CHPT - ChargePoint: Struggles Remain Persistent

2024-06-10 16:19:48 ET

Summary

• ChargePoint Holdings, Inc. continues to struggle due to an unsustainable business model in the EV charging space.
• The company's guidance for FQ2 revenues is lower than expected, casting doubt on its goal of reaching adjusted EBITDA profitability in FQ4.
• The stock probably has limited downside here below $2 despite the obvious struggles turning the business around.

In no real surprise, the EV charging space continues to struggle due to business models that don't work. ChargePoint Holdings, Inc. ( CHPT ) has been the poster child for the failures of this space. My investment thesis remains Neutral on the stock on signs of a bottom below $2, though expectations for huge upside won't occur with the current business model....

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