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Blink Charging: Huge Downside Risk For The Most Overvalued EV Charging Station Stock

Mar. 08, 2021 12:45 PM ETBlink Charging Co. (BLNK)21 Comments
Investor Trip profile picture
Investor Trip


  • Blink Charging operates over 23,000+ charging stations across North America, Europe, and the Middle East.
  • The EV charging boom has caused BLNK stock to trade at an incredibly high P/S ratio and shares are grossly overvalued.
  • Blink has a bright future but investors should approach with caution and wait for a cheaper stock price before entering a long position.

Blink Charging (NASDAQ:BLNK) is one of America's hottest EV charging companies with over 23,000 charging stations deployed across North America, Europe, and the Middle East.

The company has a growing member base of over 180,000 and seeks to continue its aggressive growth as EV adoption ramps up.

While I like the growth prospects for Blink Charging, investors should wait to invest in Blink Charging stock because it's grossly overvalued at its current price.

EV charging stocks peaked in early February and there could be a lot more downside risk in the short term.

Source: Ycharts.com

Blink has an amazing future ahead but I think you can wait to purchase BLNK shares at a much better price in the future.

Blink's Business Model

Blink Charging deploys self-owned EV charging stations and generates revenue by charging EVs, selling EV charging hardware, providing network connectivity, payment processing, and advertising.

The company makes money from its own charging stations using a vertical integration strategy unlike Chargepoint (CHPT) that generates most of its revenue through 3rd party sales and software subscriptions.

Blink offers Level 2 chargers for home use and DC fast charging units for commercial use.

Blink Charing UnitsSource: BlinkCharging.com

Things are looking bright for Blink and the company has grown revenue a lot of the last few quarters.

Blink should generate around $5 million in annual revenue during 2020 (almost up 100% from $2.8 million in 2019). During Q3 2020, the company sold, deployed, or acquired 668 charging stations across 25 states.

Blink acquired BlueLA Carsharing and its 200 EV charging stations located in downtown Los Angeles, CA as well.

Blink founder and CEO Michael Farkas remains extremely bullish on growth in the EV industry but my biggest issue with Blink charging stock is the current valuation.

Blink Charging Stock is Overvalued

This article was written by

Investor Trip profile picture
Investor Trip is an investment research company founded in 2006 by Tarik Pierce. Tarik Pierce studied Economics at Dartmouth College and focuses on high CAGR stocks and cryptocurrencies. Our investment strategy is to identify sectors with massive growth potential then pick the biggest & best companies that will become future winners. Follow us to receive notifications whenever a new article is published.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (21)

Any updated views after earnings?

Compensation increasing 2.7m year over year while total revenue is only $2.2m for the quarter is highly discouraging.

Also, the 22% of revenue coming from the Greek entity they have an ownership stake in is concerning. Anybody have further details on this?

Disclaimer: I have puts expiring later in the year and expect 70-80% losses at some point in the next few years.
39.64 USD
+2.62 (7.08%)
Apr 28, 3:46 PM EDT ·Disclaimer

big jump
any good news?
xamd profile picture
They put out a press release weekly. I think this week it was the 4 chargers they are putting in in Portland OR.
So don't buy the name. Very simple
bazooooka profile picture
Ran another fifty percent even after this article.
Please, understand that while perhaps experimenting with mushrooms, it can distort perception!
Doesn't matter what works or doesn't. It's all lies and B.S. from the Blinkie.
Why did CEO get so agitated when asked if they manufacture through a 3rd party ? Back to 1.50 soon.
@lifemisspent They resell China made devices to Amazon.
marpy profile picture
Existing gas stations are not just going to roll over. Nothing stopping them from installing charging stations on their properties and eslewhere.
They ALL look overpriced and losing money...go with SIRC, they will just be installing and already have agreement with BLNK.
No position my ass....he's totally short.
BLNK will trade sub $5 this year.
one of the worst articles ever written about BLNK
@jeff54321 Damnit Jeff, you beat me to it!
Costanzas profile picture
@jeff54321 I concur with jeff54321......so many missing pieces of information in this article. Two big ones - Blink does not have ~23,000 chargers deployed - they pump that but the truth is they have sold 23,000 chargers in their entire history and almost 15,000 of those are one-time sales for home use that they will never drive future revenue for Blink. Also, they already did a secondary offering a few months ago which will provide them a few hundred million in cash on the balance sheet. I do agree with the author that the valuation is crazy and the stock price should be closer to $10-$15, but would note that a further deep dive would provide even better data points to arrive at that conclusion....
xamd profile picture
yeah thanks for writing about that secondary they did. This author missed the boat on how much money they have. I remember getting the news for that one and have to admit Blink picked the right time to do it. They have like 250 million now or so? They are loaded. Farkas is loaded, his board is loaded, they have posh offices... just from the stock spike. But besides that major miss the author is correct about the price. 10-15 bucks. The question is whether the stations actually work. You guys probably saw the short report which stated that a good portion of the blink meters dont even work. If Farkas wants the price on the stock to be realistic he really has to have someone go out and make sure EVERYONE of those sites is working .
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