What Happened?
Shares of EV charging infrastructure provider Blink Charging (NASDAQ: BLNK) jumped 10% in the afternoon session after the company announced an expanded collaboration with Belgian office property company Group Bernaerts to increase its electric vehicle charging footprint in the country.
Under the agreement, which builds on a partnership started in 2022, Group Bernaerts plans to double its current 88 Blink charging stations to at least 176 by the end of 2025. The chargers are located across various properties in the Belgian cities of Antwerp and Mechelen. This expansion in the European market signals Blink's continued growth and addresses the rising demand for EV charging solutions in multi-tenant properties. The news provided a significant boost to the stock, which has faced profitability challenges despite maintaining a healthy balance sheet with more cash than debt.
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What Is The Market Telling Us
Blink Charging’s shares are extremely volatile and have had 74 moves greater than 5% over the last year. But moves this big are rare even for Blink Charging and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 8 months ago when the stock dropped 21.9% on the news that the company reported weak third-quarter earnings. Full-year revenue guidance missed as sales fell short of Wall Street's estimates during the quarter. The top line was particularly impacted by a sharp deceleration in DC fast charger sales, given the tough comparison relative to the previous year. This trend was mostly concentrated in the automotive dealerships. As a result, the company planned to replace dealership sales by focusing on other sales verticals, though this might take some time to be reflected on the top line. Profitability, however, showed some resilience as the company managed to reduce its cash burn by 27% year-over-year and 50% year to date, driven by cost optimization efforts and a shift toward higher margin Level 2 chargers. Still, this was a weaker quarter.
Blink Charging is down 24.3% since the beginning of the year, and at $1.14 per share, it is trading 66.7% below its 52-week high of $3.41 from July 2024. Investors who bought $1,000 worth of Blink Charging’s shares 5 years ago would now be looking at an investment worth $186.07.
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