ChargePoint Pivots for Profitability, But Is It a Stock to Buy?
Investors initially bought into the hype surrounding ChargePoint (NYSE: CHPT) and other charging infrastructure companies. It was a logical direction with the electric vehicle (EV) industry poised to boom in the coming years. In fact, some of the biggest concerns facing potential EV customers are range anxiety and charging infrastructure availability, problems ChargePoint can help solve.
Despite the growing EV market -- even if it's slower than anticipated -- ChargePoint has struggled to produce top-line growth for investors. But with a recent pivot from growth to profitability, can the company turn its business around and reward investors?
One bad sign for the charging infrastructure start-up is that while many EV industry start-ups are facing brutal cash burn as they scale their business, fewer are posting revenue declines. ChargePoint's first quarter of fiscal year 2025 recorded an 18% decline in revenue, from the prior year's $130 million down to $107 million. Management also reduced second-quarter revenue guidance from a range of $150 million to $165 million down to a range between $108 million and $113 million.
Source Fool.com
