Why ChargePoint Stock Crashed Today
Investment
The Motley Fool

Why ChargePoint Stock Crashed Today

July 28, 2025
11:21 AM
2 min read
AI Enhanced
tradingfinancialtechnologymarket cyclesseasonal analysismarketdata analysis

Key Takeaways

ChargePoint just gave investors a huge clue as to how things are going with it.

Article Overview

Quick insights and key information

Reading Time

2 min read

Estimated completion

Category

investment

Article classification

Published

July 28, 2025

11:21 AM

Source

The Motley Fool

Original publisher

Key Topics
tradingfinancialtechnologymarket cyclesseasonal analysismarketdata analysis

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.