Blink’s colorful origin story has been a prime target of short-sellers.
(Feb 8): There is nothing about the finances of Blink Charging Co that would suggest it’s one of the hottest stocks in America.
It’s never posted an annual profit in its 11-year history; it warned last year it could go bankrupt; it’s losing market share, pulls in anemic revenue and has churned through management in recent years.
And yet a hot stock it is. Investors have bid Blink’s share price up 3,000% over the past eight months. Only seven stocks out of about 2,700 that are worth at least US$1 billion have risen more over that time. The reason: Blink is a green-energy company, an owner and operator of charging stations that power up electric vehicles. And if investors are certain of one thing in the mania that is sweeping through financial markets, it is that green companies are can’t-miss, must-own investments of the future.
The Last Mile in the Race to Vaccinate America: The Citizen and Patient Experience governing.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from governing.com Daily Mail and Mail on Sunday newspapers.
State of play
In all the recent market mania, it might be easy to forget that there’s an actual company at the center of the frenzy. Here’s a quick look at the real-world prospects for GameStop, which begins the week with a market cap of more than $20 billion, up from $1 billion at the start of the year.
Running the numbers. GameStop’s annual sales peaked at nearly $10 billion before falling to $6.5 billion in its most recent pre-pandemic fiscal year. It has recorded a loss in eight of its past 10 quarters.
[Read more on
Image
The biggest challenge. Gamers can now easily download their games directly instead of going to a store. That means GameStop needs to find a use for the more than 5,000 stores it operates. It could downsize, and it’s been trying, but this is expensive and difficult; unwanted retail properties are flooding the market. And shrinking to grow has not proven a path to retail greatness. In truth, few