Market watchers have been balancing many uncertainties recently, helping to drive a rotation out of growth stocks. Even after a 3% rally on Thursday, the tech-heavy Nasdaq Composite index is down nearly 10% this month. More speculative, unprofitable companies like electric vehicle charging company Blink Charging (BLNK 3.37%) have fared even worse. Blink shares are down more than 25% in April. That includes a drop of 7.5% this week heading into the last day of trading, according to data provided by S&P Global Market Intelligence.
Blink hasn't reported any real negative news this week to continue the downtrend, but investors are beginning to lose patience with names in the electric vehicle sector that are still a long way from profitability. That includes Blink, as it invests to grow its charging network both in the U.S. and internationally. On the latter front, the company made more progress this week through an acquisition.
Blink announced the acquisition of an EV charging company in the U.K. this week. The acquisition of Electric Blue (EB Charging) is Blink's initial entry into the U.K., and adds more than 1,150 chargers to its network and backlog. The purchase price of up to $23.4 million was in the form cash, stock, and potential milestones. EB's customers include local authorities, fleet managers, universities, and healthcare facilities.
That acquisition comes on the heels of another announcement regarding Blink's international expansion. Earlier this month, the company announced it had added more than 200 chargers in Greece and made reseller and distribution agreements to add customers in nine Latin American countries.
But while the company invests to grow, investors have still been selling it, and other growth and technology companies recently. The Nasdaq is on pace for April to be its worst monthly performance since March 2020, and this week's drop in Blink Charging stock is one of the casualties.