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ChargePoint released its 2022 fourth quarter earnings report in the beginning of this month. Revenue was higher on a year-over-year basis by more than 90% and over 20% by previous quarter. ChargePoint’s guidance was lower than market expectations by around $5 million.
Supply chain issues drove the price down, according to the company. North America is the company’s revenue generating region which witnessed a fall in demand toward the end of last year. In the wake of supply chain issues, which still lingers in many other sectors, the EV services company struggled with hardware products.
The Made-in-America federal program could exacerbate supply chain and production issues. The program aims to ramp up domestic production of charging station infrastructure and create more jobs locally. It also sets final assembly requirements for companies.
CHPT Stock Price Movement on Chart
CHPT stock price moved upwards prior to the starting of this year after testing its support at $8 and continued the streak till mid-February. The stock price nosedived after testing its 200-day EMA at around $13 which is now acting as resistance. The current movement of CHPT stock is below both 200- and 50-day EMAs indicating short-term bearishness.
Post earnings report release, an optimistic outlook regarding revenue and cash flow is likely. The management expects revenue in the first quarter of this year to stay between $122 million to $132 million, approximately 56% up from last year.
In addition, the company expects cash flow to become positive by 2024 leaving it with sufficient cash. It is also seeking to grow in the Europe region. Several partnerships with different companies for various purposes including navigation and home chargers, etc. are also in the pipeline.
CHPT stock is likely to gain in future in the wake of ChargePoint’s positive outlook and analyst optimism. WSJ analysts put ‘overweight’ consensys stock rating for the stock with the targeted price to hit $17. CNN Business analysts also put the stock price forecast of $17 with ‘buy’ recommendation.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
