What Happened?

A number of stocks jumped in the morning session after strong results from chipmaker Nvidia eased lingering concerns about a potential bubble, especially in the tech sector. 

The tech giant delivered another blockbuster earnings report, with sales, profits, and guidance exceeding Wall Street expectations. CEO Jensen Huang let the data do the talking as he acknowledged the growing sentiment about an AI bubble, while affirming that sales for Nvidia's current-generation GPU, called Blackwell (mostly used for AI applications), are "off the charts." A stronger-than-expected September jobs report from the Bureau of Labor Statistics reinforced this bullish sentiment. Nonfarm payrolls rose by 119,000, easily surpassing the consensus estimates of 50,000. While the unemployment rate ticked up to 4.4% and wage growth slowed slightly, the data suggest the U.S. economy remains on a firm footing. While this resilience made some investors unsure of the Fed's December rate decision, the market welcomed the news, rallying on the strength of a solid economy and a booming tech sector.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Renewable Energy company EVgo (NASDAQ: EVGO) jumped 3.3%. Is now the time to buy EVgo? Access our full analysis report here, it’s free for active Edge members.
• Electronic Components company Bel Fuse (NASDAQ: BELFA) jumped 3.2%. Is now the time to buy Bel Fuse? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company Blink Charging (NASDAQ: BLNK) jumped 3.3%. Is now the time to buy Blink Charging? Access our full analysis report here, it’s free for active Edge members.

Zooming In On EVgo (EVGO)

EVgo’s shares are extremely volatile and have had 44 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 9 days ago when the stock dropped 4.2% on the news that the stock's negative momentum continued as the company reported mixed third-quarter financial results that showed strong revenue growth but also a failure to meet sales expectations and a slightly wider-than-projected loss. 

EVgo announced total revenue of $92.3 million, a significant 37% increase from the same period in the previous year. However, this amount fell just short of analyst forecasts. The company also posted a loss of $0.09 per share, which was slightly deeper than what analysts had anticipated. Despite the misses, the report included some bright spots, such as a record $55.8 million in charging network revenue and a gross profit that nearly doubled from the prior year. Nevertheless, the market's reaction focused on the shortfalls in revenue and earnings, reflecting ongoing concerns about the company's path to profitability.

EVgo is down 30.9% since the beginning of the year, and at $2.90 per share, it is trading 56.2% below its 52-week high of $6.61 from December 2024. Investors who bought $1,000 worth of EVgo’s shares 5 years ago would now be looking at an investment worth $295.06.

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