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The ChargePoint (CHPT) Stock Price Has Fallen 16.46% in One Week. Should You Buy It?

Simon Mugo trader
Updated 6 Dec 2021

ChargePoint Holdings Inc (NYSE: CHPT) stock price has fallen 14.5% in one week and seems to be headed lower ahead of its Q3 earnings. So is it a good buy?

Well, the recent decline in the company’s stock price comes at a time when it is about to release its third-quarter financial results scheduled for tomorrow, which could determine the future direction of its stock price.

Meanwhile, the latest downtrend could have been triggered by the passage of the US bipartisan infrastructure bill, which allocated $7.5 billion in funding to expand the country’s EV charging infrastructure by 500,000 charging stations.

The current downtrend could be a reaction to the bill’s passage as investors take profits on their positions ahead of the release of its following earnings results.

ChargePoint is expected to benefit from government spending given that it is a leading operator of charging stations across the USA. The company has over 110,000 charging stations in the US and is a market leader in the country.

However, the company is rapidly expanding its international footprint with the acquisition of has-to-be, an electric mobility platform based in Austria that operates over 40,000 charging points across Europe.

At the time, the company said: “Today, ChargePoint is commercially active in 16 European countries. Demonstrating the company’s commitment to a superior charging experience and the expansion of electric mobility across the continent, ChargePoint also now provides around-the-clock support to drivers and station owners in multiple languages.”

Investors interested in the company should watch its stock performance tomorrow when its Q3 earnings results are released. A positive result could trigger a rally higher, while a negative result could trigger further losses.

*This is not investment advice. Always do your due diligence before making investment decisions.

Chargepoint stock price.

Tradingview chart of Chargepoint stock price 06-12-2021
Source: Tradingview

Chargepoint stock price has fallen 16.46% in one week ahead of earnings. Is it headed lower?

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading