What's Going On With ChargePoint Stock?
Portfolio Pulse from Adam Eckert
ChargePoint Holdings Inc (NYSE:CHPT) reported Q3 financial results with revenue of $110.3 million, missing estimates of $122.408 million, and a 43 cent loss per share compared to a 25 cent loss in the prior year. Revenues decreased by 12% year-over-year, with networked charging systems revenue down 24% and subscription revenue up 41%. The company's gross margin was negative 22%, down from 18% year-over-year, and ended the quarter with $397.4 million in cash and equivalents. ChargePoint reaffirmed its expectation for positive adjusted EBITDA in Q4 of fiscal 2025. Analysts from Needham and B. Riley Securities provided mixed reactions, with Needham reiterating a Buy rating with a $4 price target, and B. Riley downgrading the stock from Buy to Neutral with a $2.50 price target. ChargePoint shares saw a slight decline of 0.98% to $2.02.
December 07, 2023 | 2:46 pm
News sentiment analysis
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NEGATIVE IMPACT
ChargePoint reported lower than expected Q3 earnings, with a significant revenue miss and increased losses per share. Analysts have mixed opinions, with one maintaining a Buy rating and another downgrading the stock.
The negative earnings report, with missed revenue expectations and a larger loss per share year-over-year, is likely to impact investor confidence negatively. The mixed analyst ratings may provide some support, but the downgrade by B. Riley Securities and the negative gross margin trend suggest a bearish outlook in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100