Shares of popular electric vehicle (EV) charging network provider ChargePoint Holdings (CHPT) have declined significantly over the past few months, even though the company completed several acquisitions and expanded its reach in Europe. Let’s find out if it is wise to buy the stock trading below $20?.One of the largest charging networks providers, ChargePoint Holdings, Inc. (CHPT), made its stock market debut on March 1, 2021, merging with a special purpose acquisition company (SPAC), Switchback Energy Acquisition Corporation. The company has made several acquisitions over the past few months. For example, it acquired ViriCiti in August 2021. Also, in July 2021, it agreed to acquire a leading European e-mobility technology provider, ‘has·to·be’. However, these acquisitions have taken a toll on CHPT’s already weak financials.
The stock has lost 17.4% over the past month and 34.5% over the past three months to close yesterday’s trading session at $18.66. On July 14, the company announced the pricing of its previously announced underwritten secondary offering of 12 million shares of its common stock, whereby the selling shareholders would receive all of the proceeds from the offering. However, this news led to investors’ pessimism. The company witnessed increased supply chain costs and reported a loss in the second quarter. So, the stock’s near-term prospects look bleak.
Here are the factors that could influence CHPT’s performance in the upcoming months: