Blink Charging (NASDAQ: BLNK) Looks Ready to Add to Its 257% Gain Since June
Blink Charging (NASDAQ:BLNK), a provider of EV charging services and equipment, is currently experiencing an epic bull run. As an illustration, since the 1st of June, Blink’s stock has recorded a gain of 257 percent. Incidentally, this upthrust coincided with a surge in interest in the stock on the increasingly popular brokerage platform Robinhood.
The following snapshot from Robintrack – a dedicated webpage that tracks trending stocks on Robinhood – illustrates this phenomenon:
As a refresher, Blink Charging allows the facility to charge EVs at thousands of locations spread across the United States. As per the company’s website, it provides the following services:
“Our principal line of products and services is our Blink EV charging network (“Blink Network”), EV charging equipment, also known as electric vehicle supply equipment (EVSE), and EV charging services. Our Blink Network is proprietary cloud-based software that operates, maintains, and tracks all of the EV charging stations connected to the network and the associated charging data. Blink Network provides businesses, property owners, property managers, and businesses with cloud-based services that enable the remote monitoring and management of EV charging stations, payment processing, and provides EV drivers with vital EV charger information including station location, directions, availability, and applicable fees.”
As mentioned earlier, a surge in interest among Robinhood traders pushed the stock to a new year-to-date high of $8.40 on the 8th of July. While Blink shares moderated their gains in the immediate aftermath of that milestone, they seem to have resumed their upward march recently. As an illustration, since the 15th of July, the stock is up nearly 12 percent. Bear in mind that this week has been characterized by a general slump in EV and other high-momentum stocks. Consequently, Blink’s recent surge constitutes a welcome outlier.
As far as the fundamentals are concerned, Blink Charging reported its earnings for Q1 2020 on the 13th of May. Accordingly, the company reported a revenue of $1.29 million during the quarter, exceeding expectations by $100,000. On an annual basis, Blink managed to increase its quarterly revenue by an impressive 125 percent. However, it reported an EPS of -$0.11, missing consensus expectations by $0.02. Crucially, as per Blink’s press release, gross margin improved to 23.8 percent:
“Gross margins improved to 23.8% in the three months ended March 31, 2020, compared to 9.3% in the same prior-year period, driven primarily by favorable economies of scale in generating the Company's product sales as well as a reserve for excess and obsolete inventory of $123,808 recorded during the three months ended March 31, 2019.”
More recently, the city of Portland expanded its EV infrastructure by increasing Blink’s IQ 200 charging stations across the city to 14 in June. Moreover, Portland’s municipal authority upgraded its Smart Parks by including the use of dedicated 80-amp circuit breakers to ensure compatibility with Blink’s 19.2 kW stations.
While it is anyone’s guess how far the current up thrust in Blink’s shares can be maintained, Robinhood-induced momentum is generally considered fickle. Consequently, potential investors should exercise due diligence before committing to any exposure vis-à-vis the stock.
The author does not maintain any long/short position in Blink Charging