ChargePoint (NYSE: CHPT) has long been struggling with a weakening electric vehicle (EV) market, and the charging network operator just dove on its latest earnings report.
Revenue fell 28% to $108.5 million for the second quarter of fiscal 2025, ended July 31, with a 44% decline in its networked charging systems segment to $64.1 million. However, its subscription revenue business rose 21% to $36.2 million.
ChargePoint also narrowed its net loss on a generally accepted accounting principles ( GAAP ) basis from $125.3 million to $68.9 million, though it's still far from turning a profit. The company also said it would cut its workforce by 15% in an attempt to move closer to profitability.
Amidst a challenging EV market backdrop , one Wall Street analyst moderated its expectations for ChargePoint but still sees upside in the EV stock.
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One analyst dims its view on ChargePoint
Following ChargePoint's second quarter earnings release last week, TD Cowen cut its rating on the stock from hold to buy and lowered its price target from $3 to $2.
Cowen said that the electric vehicle "recession" is still impacting the company, and while it saw some signs that a bottom could be near, a reacceleration in its revenue growth will take time.
Even with the lowered price target, Cowen is still giving the stock an implied upside of 52% from its closing price on Friday.
Is ChargePoint stock a buy?
ChargePoint has been steadily falling since it went public through a SPAC in 2021 as momentum in the EV market has faded and its combined charging system (CCS) has lost market share to Tesla 's North American Charging System (NACS).
The latest earnings report only offers more reasons to believe that the stock could eventually go to zero as declining revenue and mounting losses over a sustained period are typically a recipe for bankruptcy.
With the EV industry struggling broadly, ChargePoint's revenue falling, and losses piling up, investors are better off avoiding the stock.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy .
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