Blink Charging (BLNK) Pre-earnings Analysis
Chart done on hourly timeframe. Electric vehicle and charging station companies were amongst the leader to the downside in the correction we’ve seen in the last 24 months. As interest rates surged and demand for electric vehicles slowed, companies like Blink have moved their way to all time lows in recent months. Blink’s 2021 highs were never justified given the company’s revenue is still below 100M annually. This is a company’s that’s never been profitable and is likely still far away from being positive net. Nonetheless, the electric vehicle market is still young and has a lot of room for growth, and Blink has established itself as a key player of charging stations. The current valuation and market presence may bring some buyout considerations from larger names in the future for the company. As far as these earnings specifically, analysts are expecting the company to still report negative EPS, but revenue is expected to grow. PLUG’s earnings recently showed the company missed EPS by nearly 100%, which could foreshadow what we see from BLNK. The only positive the company may have going for them is the expected decline in interest rates. Young companies like Blink are very sensitive of interest rates so they might see stronger guidance on an interest rate cut if it happens.
Option chain analysis
Blink’s option chain expiring March 15th is currently reflecting a 213% implied volatility reading, which translates to about a $.58 move on the underlying stock.