Why ChargePoint (CHPT) Stock Is Falling Today

What Happened?

Shares of EV charging solutions provider ChargePoint Holdings (NYSE:CHPT) fell 8.9% in the afternoon session after Goldman Sachs maintained its "Sell" rating on the company's stock. 

Analyst Mark Delaney did raise the price target to $10.00 from $9.00. However, the continued negative outlook from a major financial institution appeared to worry investors. The "Sell" rating suggested a lack of confidence in the company's near-term performance, overshadowing the minor increase in the price target and prompting a sell-off.

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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 gained 26.8% on the news that the company reported third-quarter results that beat Wall Street's revenue expectations and showed improving profitability. 

Revenue grew 6.1% year-on-year to $105.7 million, exceeding analyst estimates by over 10%. The company's gross margin also showed significant improvement, expanding to 30.7% from 23.8% in the same quarter last year. While its GAAP loss per share of $2.23 slightly missed analyst forecasts, it marked a substantial improvement from a loss of $3.56 per share in the prior year. Looking ahead, ChargePoint provided an optimistic revenue forecast for the next quarter, with its guidance of $105 million at the midpoint also coming in above Wall Street's projections.

ChargePoint is down 57.7% since the beginning of the year, and at $9.48 per share, it is trading 66.1% 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 $12.29.

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