ChargePoint: Still Living On EV Hype

 

  • ChargePoint still has an amazing $4.3 billion market cap, despite selling charging stations mostly at cost.
  • The company still has no meaningful gross profit from subscriptions.
  • The stock is far too expensive at 6x FY24 sales, despite the business burning tons of cash each quarter.
  • This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » 
Even though ChargePoint Holdings (NYSE:CHPT) is trading closer to the lows now, the stock is still living off EV hype. The stock constantly rallies up to $20 providing a better opportunity for longs to dump shares, but another rally isn't guaranteed as the quarter ahead will ultimately highlight cash burn concerns. My investment thesis remains Bearish on the EV charging station stock.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Update - Dec. 2

ChargePoint missed FQ3'23 revenue estimates, but the company provided mixed results for FQ4. The EV charging station company burned over $80 million of cash in order to grow subscription revenues by $1.5 million in the quarter. 
  • Q3 GAAP EPS of -$0.25 misses by $0.02.
  • Revenue of $125.34M (+92.7% Y/Y) misses by $6.78M.
  • GAAP and Non-GAAP gross margin both improved 1 percentage point quarter-over-quarter.
  • As of October 31, 2022, cash and short term investments on the balance sheet were $397.6 million.
Any weakness tomorrow and ChargePoint could break the strong support recently around $11.50. 

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