ChargePoint Surge Falls Short
And, Marvell's inventory reductions.
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ChargePoint Surge Falls Short
Investors should be pleased that ChargePoint Holdings (NYSE: CHPT) only fell 2.3% in after-hours trading on Thursday because the electric vehicle infrastructure company posted bad financial results for the quarter.
Financials: ChargePoint reported a loss of 25 cents per share and revenue of $123.3 million; both were below estimates.
Surge: Revenue jumped 93% year-over-year. Subscription revenue was up 62% and Networking charging systems revenue was up 105%.
Problems: Despite the revenue surge, the gross margin dropped from 25% to 18%. The company blamed supply chain disruptions, which impacted cost and supply availability.
Outlook: ChargePoint anticipates full-year revenue to be between $475 million to $485 million, which is revised upward by $5 million. The company also anticipates that operating expenses will drop. Overall, this was good financial guidance that investors liked.
Stock Price: Shares of ChargePoint are down 38% this year, including a 6% drop in the last 30 days.
Final Thoughts: It’s been a rough year for the electric vehicle industry. Although supply chain woes hurt ChargePoint’s margins, the positive outlook gives investors a reason to be hopeful in the future.
Notable Earnings Today: Cracker Barrel (Nasdaq: CBRL), Genesco (NYSE: GCO).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: The Busy Bee Play Cafe (Mainvest), De L’or Cakery (Mainvest), Little Red Hen: Scratch Bakery + Kitchen (Mainvest), Drawdown Brewing Co. (Mainvest), ParentPlaybook (Netcapital).
Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payroll (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Labor-Force Participation Rate (8:30 a.m. ET).
Marvell's Inventory Reductions
A mixed bag of financial results set shares of Marvell Technology (Nasdaq: MRVL) down 7.27% in after-hours trading on Thursday.
Financials: Marvell Technology reported earnings of 57 cents per share in the quarter and revenue of $1.54 billion; both were below estimates.
Quote: “Inventory reductions, in particular at our storage customers, are impacting our near-term results and guidance, and we are working closely with them to manage their change in demand in an orderly fashion to clear the path to a resumption of growth.” - Matt Murphy, Marvell's President and CEO.
Outlook: Marvell Technology expects net revenue to be around $1.4 billion in the current quarter, which was also below estimates.
Stock price: Shares of Marvell Technology are down about 49% this year, but are up 16% in the past month.
Final Thoughts: Amid a rough environment for semiconductor companies, Marvell is trying to turn things around. It needs to resolve those inventory reductions to make investors happy again.
Fantom Jumps Due to Proposal
The price of the cryptocurrency Fantom jumped 5% on Thursday as the prices of most other coins slipped or stayed flat.
How it Happened: A new proposal on Thursday suggested that the Fantom network start an affiliate program for developers with gas fees, which would be funded by slashing the token burn rate by 75%, according to Cointelegraph.
Final Thoughts: It’s hard to trust any short-term crypto now, including Fantom.
Trends to Watch
Beautiful: Ulta Beauty boosts outlook, as shoppers keep splurging on makeup (CNBC)
Another Risk: Rising Tether Loans Add Risk to Stablecoin, Crypto World (The Wall Street Journal)
2019 is Calling: Tesla delivers first electric Semi trucks — three years late (The Verge)
Inflation Fading Away: The Fed’s favorite inflation measure cooled in October (CNN)
Not Approved: Blackstone limits withdrawals at $125bn property fund as investors rush to exit (Financial Times)
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