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Blink (BLNK) Shares Affected by Macro Economic Volatility

Zacks Equity Research
·3-min read

Blink Charging BLNK shares have lost 47.1% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Services industry’s rise of 3.6%.

All-time-high inflation increased the total cost of revenues and operating expenses, which weighed on margin expansion in the third quarter of 2022 and resulted in a quarterly loss of 47 cents compared with a loss of 36 cents in the year-ago quarter.

Further interest rate hikes by the U.S. Federal Reserve are expected to have brought recession to the U.S. market, as reflected by the mass employee sacking by major tech giants like Meta Platforms, Twitter and Microsoft.

Technology sector is bearing the brunt of the macro-economic uncertainty as reflected by the crash in share prices of Blink Charging and its electronic vehicles (EVs) peers ChargePoint CHPT, Beam Global BEEM and EVgo EVGO.

Blink Charging Co. Price and Consensus

Blink Charging Co. Price and Consensus
Blink Charging Co. Price and Consensus

Blink Charging Co. price-consensus-chart | Blink Charging Co. Quote

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ChargePoint shares have lost 34.6% year to date compared with the Zacks Automotive - Original Equipment shares fall of 26.9%.

Beam Global shares have fallen 7.8% in the year-to-date period.

EVgo is a chief competitor of Blink Charging as an EV charging company that provides competitively priced EV charging services to customers. EVGO shares have tumbled 33.7% in the year-to-period.

However, an uptick in demand across the automotive domain for EVs as economies reopened and lockdowns were lifted might have acted as a tailwind. An increase in sales of EV transportation led to a rise in the need for additional charging infrastructure. This contributed to Blink Charging’s top line in the last reported quarter. It reported revenues of $17.25 million, which surged 169% from the year-ago quarter.

In order to keep on benefiting from the EV megatrend, BLNK has showcased three new EV charging products like the 30kW DC fast charger, MQ200 and HQ200.

Blink Charging Increasing Production to Boost Top Line

Blink Charging’s latest product releases will help the company significantly boost the electrification of fleet vehicles and make charging more accessible for EV drivers living in multifamily buildings.

The company, which currently carries a Zacks Rank #3 (Hold), is likely to benefit from improving demands for EVs. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Per the International Energy Agency, global EV sales are expected to go from 3 million vehicles in 2020 to about 25 million vehicles in 2030, courtesy of growing awareness about lowering carbon footprint to counter global warming.

A favorable legislative environment to adopt zero-emission EVs, both nationally and globally, might have favored the company’s to-be-reported quarter’s top line. The Biden government recently approved the first-round funding of $900 million for the nationwide development of EV charging infrastructure through its Inflation Reduction Act.

Moreover, positively impacting the EV industry is the CHIPS and Science Act, which is helping to solve the U.S. semiconductor supply chain issue and boosting EV production and sales.

As a result, Blink Charging decided to increase its production capacity in the United States to benefit from the positive social and economic environment the company is operating in amidst such an economic crisis globally.


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Blink Charging Co. (BLNK) : Free Stock Analysis Report
 
Beam Global (BEEM) : Free Stock Analysis Report
 
ChargePoint Holdings, Inc. (CHPT) : Free Stock Analysis Report
 
EVgo Inc. (EVGO) : Free Stock Analysis Report
 
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Zacks Investment Research