Blink Charging (BLNK) Stock Wavers on U.S. Postal Service Contract
Sometimes, financial traders have difficulty deciding what to do. Sure, it’s good news that Blink Charging (NASDAQ:BLNK) struck a deal with the United States Postal Service (USPS). Yet, BLNK stock popped and dropped as investors assessed…
Sometimes, financial traders have difficulty deciding what to do. Sure, it’s good news that Blink Charging (NASDAQ:BLNK) struck a deal with the United States Postal Service (USPS). Yet, BLNK stock popped and dropped as investors assessed this notable development.
Blink Charging is one of the best-known, publicly tradable businesses that sells and installs electric vehicle (EV) charging ports and related equipment. Impressively, Blink “has deployed nearly 66,000 charging ports across 27 countries.”
Global EV purchases, according to Blink Charging, are expected to comprise half of the passenger cars sold in the U.S. by 2030. Evidently, the postal service is getting ready to join the growing EV movement.
As part of the USPS’s vehicle-electrification strategy, it awarded Blink Charging awarded a contract to “sell up to 41,500 EV charging units.” This certainly sounds like a win-win scenario for all parties involved in the transaction. So, how is the market responding to the news?
What’s Happening With BLNK Stock?
As you might expect, BLNK stock gapped up this morning as traders weighed the news of Blink Charging’s arrangement with the postal service. However, shares dropped quickly into the red and were down 2% as of 10:30 a.m. Eastern.
As usual, Wall Street is unpredictable in the short term. In the long term, however, the deal with the USPS should benefit Blink Charging. Perhaps, the company will become the postal service’s go-to EV charging-station provider.
Even beyond that, Blink Charging could have opportunities to serve other government entities. After all, this is how reputations are built. Blink has a chance to prove itself here, and the company might build its public-sector client base during the coming months and years.
However, it appears that the market is skeptical at the moment. Still, this story isn’t finished yet and investors could change their minds about Blink Charging. If that happens, then a swift rally may be in store for BLNK stock.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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