Why ChargePoint Stock Crashed Today
Key Takeaways
ChargePoint just gave investors a huge clue as to how things are going with it.
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Quick insights and key information
2 min read
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investment
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July 28, 2025
11:21 AM
The Motley Fool
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The analysis demonstrates S of ChargePoint (CHPT -17. 87%), the electric car charging company, tumbled 14. 3% through 10:50 a (something worth watching)
ET Monday morning after conducting a 1-for-20 reverse stock split
Image source: Getty Images
Additionally, However, What is a reverse split
Market analysis shows name suggests, a reverse stock split is the opposite of a stock split
At the same time, Instead of taking one of stock and slicing it into several smaller s, each costing less and representing a smaller ownership stake in the company, a reverse split merges several existing s into one larger, higher-priced
From a holder's perspective, after a reverse split happens, you own fewer s than you started with, but they have a higher price (something worth watching)
Your actual ownership stake in the company, however, doesn't change after a reverse stock split (or for that matter, after an ordinary stock split, either)
So what's the point of a reverse split, given the current landscape
ChargePoint explains: "The reverse stock split is int to increase the market price per of the Company's common stock and help the Company comply with the minimum trading price criteria for continued listing on the New York Stock Exchange
In contrast, " Simply put, ChargePoint s were selling below the $1-per- requirement for remaining listed
To fix that, the company squished 20 s together to create one big super- costing more than $1 (in fact, more than $10 right now)
On the other hand, As a result, it's no longer in danger of immediate delisting
Is ChargePoint stock a buy (noteworthy indeed)
No, ChargePoint stock is not a buy, in today's financial world
The fact that ChargePoint wasn't able to boost its stock price by, say, growing its sales or reporting a fit, and saw no alternative but to reverse-split its way out of its listing dilemma, tells me this company is not performing at all well
It's almost certainly a sell.
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