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The financial market abandoned electric vehicle charging equipment specialist ChargePoint (NYSE:CHPT) during this year’s first half, but the story isn’t finished yet. Indeed, I wouldn’t be surprised if ChargePoint stock surges this year and eventually escapes from Penny Stock Land (i.e., breaks above the $5 penny-stock threshold).
How did the ChargePoint share price get so far below $5 in the first place? Maybe investors are worried about EV demand. They may also be concerned that high interest rates will take a toll on startup businesses like ChargePoint.
ChargePoint stock is so badly beaten down, however, that it feels like the market’s concerns are already priced in. Hence, if you’re an EV-industry believer and are on the lookout for a promising turnaround story, ChargePoint is definitely a business to get charged up about.
Be Realistic With ChargePoint
Given the company’s improvement in key financial areas, I’d claim that the market has been too hard on ChargePoint. Investors need to be realistic and steer clear of sky-high expectations.
In the first quarter of fiscal 2025, ChargePoint reduced its GAAP-measured operating expenses by 18% year over year to $90.7 million. Furthermore, the company generated quarterly revenue of $107 million, a result that surpassed Wall Street’s consensus forecast by nearly 1%.
Additionally, ChargePoint reported a Q1-FY2025 GAAP net earnings loss of $71.8 million. That’s a 10% improvement over the $79.4 million net loss from the year-earlier quarter.
Perhaps most importantly, ended the first quarter with “no debt maturities until 2028.” Consequently, even if there’s a high-interest-rate environment in America right now, ChargePoint should be in decent fiscal condition for a while.
ChargePoint Teams Up With an Electronics Giant
In other news, ChargePoint recently disclosed a team-up with a South Korea-based consumer-electronics giant, LG Electronics. Together, the two companies will “leverage their respective strengths for future innovations in EV charging.”
This is a win-win collaboration, no doubt, but it’s a notable coup for ChargePoint. LG Electronics will bring its “advanced EV charging hardware” to this partnership, and new-product deliveries are “expected to begin later this summer.”
This team-up isn’t only related to EVs, by the way. ChargePoint’s news release mentioned possible product developments in the areas of energy-storage systems as well as residential/smart-home charging, and even “public sector infrastructure projects.”
In other words, this power-packed team-up could place ChargePoint at the forefront of the global EV-charging revolution. So, stay tuned for updates as ChargePoint and LG Electronics could release some game-changing products in the near future.
Give Your Portfolio a Jolt With ChargePoint Stock
If you’re feeling stuck and your investments are going nowhere, start conducting your due diligence on ChargePoint. Sure, it’s risky to wager your capital on startup businesses. Yet, ChargePoint is improving in key areas and has a crucial partnership with an established electronics company.
Thus, you don’t have to be down on your luck in 2024’s second half. Just consider a small position in high-risk, high-potential-reward ChargePoint stock. Then, thank me later if your account balance is suddenly much bigger.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
