What happened
Shares of electric vehicle (EV) charging company Blink Charging (BLNK 7.32%) started this week strong -- at their peak, they were up by 13.5%. But the market's reaction to the company's fourth-quarter and full-year earnings report -- released late Thursday -- was fairly negative, denting those gains. As of early Friday morning, the week's gains had been pared back to about 4.5%, according to data provided by S&P Global Market Intelligence.
So what
The double-digit percentage gains in the first part of the week came as most of the alternative energy sector moved higher in reaction to geopolitical concerns and soaring oil prices. High prices for fossil fuels make renewable energy sources a better deal on a relative basis, and with gas averaging more than $4 a gallon in the U.S., electric vehicles are looking more appealing. But investors weren't happy with Blink's wider-than-expected fourth-quarter loss. The company did, however, report that sales growth remains strong, with revenue soaring by 236% in 2021.
Image source: Blink Charging.
Now what
Losses continued to grow for Blink in the fourth quarter. The company reported a full-year net loss of $55.1 million, compared to an $18 million loss in 2020. But revenue continued to soar as the company invests in growing the business. The company said it is adding partners to grow its charger network, has added several new charging products, and is expanding internationally.
Even with the stock's gains this week, it remains down 13% year to date, and down 35% over the last 12 months. Like most of the electric vehicle sector, Blink is a long-term growth story, and investors should expect its share price to be volatile along the way. But as CEO Michael D. Farkas highlighted in a statement, the company is seeing an "increasing commitment from the business community as well as state and federal entities, to promote the establishment of reliable, convenient EV infrastructure nationwide." That tailwind should continue as demand for electric vehicles grows.
