What Happened?
Shares of EV charging solutions provider ChargePoint Holdings (NYSE: CHPT) jumped 6.4% in the afternoon session after the electric vehicle (EV) charging sector saw a boost in investor confidence after competitor Blink Charging announced a significant contract win in the United Kingdom. Blink Charging's UK subsidiary was selected by Bradford Council to deliver 104 EV charging ports as part of a government-supported infrastructure program. While this news directly benefited Blink, it signaled growing investment and demand for EV charging infrastructure more broadly. This positive development for the industry likely increased investor optimism for other major players in the space, including ChargePoint, leading to a rise in its stock price.
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What Is The Market Telling Us
ChargePoint’s shares are extremely volatile and have had 58 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 5.1% on the news that the U.S. threatened to impose "massive increases" to tariffs on China in response to new export controls from Beijing. The potential countermeasures follow China's decision to place new restrictions on the export of strategic minerals and related products, including rare earths, which are critical for the defense, semiconductor, and manufacturing industries. This escalation in the economic competition between the two largest global economies is fueling investor anxiety. The new tariff threats raise concerns about disruptions to global supply chains, increased material costs for manufacturers, and a potential drag on an already sluggish economy. Industrial companies are particularly sensitive to these developments as they are often cyclical and heavily reliant on international trade.
ChargePoint is down 47.3% since the beginning of the year, and at $11.81 per share, it is trading 57.8% below its 52-week high of $28 from December 2024. Investors who bought $1,000 worth of ChargePoint’s shares 5 years ago would now be looking at an investment worth $40.96.
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