Why ChargePoint Shares Tanked Today
Shares of ChargePoint Holdings (NYSE: CHPT) joined the large list of higher-risk equities that tumbled today. Like the overall market, ChargePoint shares were near the day's lows as of 3:05 p.m. ET. The stock was off by 5.4% at that time, capping off what turned out to be a harsh week for shares of the electric vehicle (EV) charging network company.
In the week when the U.S. Federal Reserve led a series of interest rate hikes around the globe, investors just don't want to own risky assets. This "risk-off" mentality has shares tumbling for companies still trying to turn their businesses profitable. ChargePoint has been growing revenue quickly and expects to approximately double its annual sales this year versus its prior fiscal year.
But it has yet to make a profit and has risks ranging from its business model to competition. But for those who believe it can turn its hardware into a profitable stream of income and stand out among the competition, ChargePoint's drop this week could be a good opportunity. That's because recent business- and sector-specific news remains positive.
Source Fool.com
