What Happened?
Shares of EV charging solutions provider ChargePoint Holdings (NYSE:CHPT) jumped 4.2% in the afternoon session after investors looked forward to the company's upcoming earnings report, which was scheduled for later in the week.
The move also came amid broader positive news for the electric vehicle charging sector. Data showed that the deployment of CCS1 chargers, a common standard used by many non-Tesla vehicles, was outpacing the NACS standard in the U.S. during the year. The number of publicly available CCS1 connectors grew by nearly 9,000, or 37%, since the start of the year, surpassing a total of 30,000. This growth highlighted continued investment in the charging infrastructure that companies like ChargePoint operate within, suggesting a healthy market environment before the company released its financial results.
The shares closed the day at $7.90, up 3.1% from previous close.
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What Is The Market Telling Us
ChargePoint’s shares are extremely volatile and have had 59 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 12 days ago when the stock dropped 2.8% on the news that markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts. While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%. This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment. Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.
ChargePoint is down 64.9% since the beginning of the year, and at $7.87 per share, it is trading 71.9% below its 52-week high of $28 from December 2024. Investors who bought $1,000 worth of ChargePoint’s shares 5 years ago would now be looking at an investment worth $13.34.
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