What Happened?
Shares of EV charging solutions provider ChargePoint Holdings (NYSE: CHPT) jumped 1.7% in the morning session after the company announced a new partnership with electric van brand Farizon to become its preferred provider of commercial-grade charging solutions.
Under the new agreement, ChargePoint was set to supply charging solutions for Farizon's larger business and fleet customers. The deal also allowed Farizon's clients to use ChargePoint's integrated fleet software platform, which helps monitor vehicle status and charging in real time. This software also aimed to lower ownership costs by automating charging schedules. The partnership was designed to support businesses that were switching to electric vans for the first time by providing them with professional advice and robust charging options.
After the initial pop the shares cooled down to $11.63, up 0.7% from previous close.
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What Is The Market Telling Us
ChargePoint’s shares are extremely volatile and have had 57 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 about 21 hours ago when the stock dropped 3.6% on the news that investors grew anxious as the U.S. government shutdown extended into its seventh day, creating widespread uncertainty. The political stalemate in Washington has tangible consequences for the economy and markets.
A key impact is the delay in the release of crucial economic data, including the September jobs report, leaving the Federal Reserve with less information to guide its policy decisions. The shutdown is also causing direct disruptions, with staffing shortages at the Federal Aviation Administration (FAA) leading to widespread delays at major airports. This combination of economic ambiguity and real-world service interruptions has dampened investor confidence across multiple sectors.
Adding to the unease, Chief Economist at Moody's Analytics, Mark Zandi, warned that 22 states are already showing clear signs of a recession, placing the broader U.S. economy in a precarious position. Also, the latest Survey of Consumer Expectations from the New York Fed revealed that households' short-term inflation expectations are rising, while their outlook on the labor market is deteriorating. Consumers expressed greater concern about potential job losses and expect lower earnings growth, factors that directly impact discretionary spending.
ChargePoint is down 48.1% since the beginning of the year, and at $11.63 per share, it is trading 58.5% below its 52-week high of $28 from December 2024. Investors who bought $1,000 worth of ChargePoint’s shares 5 years ago would now be looking at an investment worth $39.50.
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