BLNK - Why Blink Charging Stock Lost Its Charge Today
2023-12-27 12:19:40 ET
Shares of Blink Charging (NASDAQ: BLNK) dropped 10.8% through 11 a.m. ET on Wednesday, probably in response to investors finally getting around to reading a report in The Wall Street Journal yesterday that detailed the troubles afflicting electric car charging stocks in the U.S. -- troubles that have cost Blink nearly 60% of its market cap over the last 52 weeks.
In a long report, WSJ explained why investors are no longer interested in paying "lofty valuations" for charging stocks like Blink, which are losing money and may be losing business to Tesla 's (NASDAQ: TSLA) Supercharger network of car chargers as well.
Charging companies "don't expect to turn profitable for about a year," says the Journal . (And actually, according to data from S&P Global Market Intelligence , most analysts don't expect Blink to turn profitable until 2026.) Slowing growth of electric car sales is one thing keeping charging companies away from profitability. The high cost of building out charging networks is another.
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Why Blink Charging Stock Lost Its Charge Today