Should I Buy EVgo (EVGO)? Finance YouTuber Analysis

The YouTuber is holding EVgo, noting its significant recent gains and reduced short interest. Despite expected negative earnings for the year, the stock maintains a good valuation based on the EV charging theme and strong revenue growth expectations.

“I'm holding it along with charge Point Holdings Ticker chpt on the charging theme over the next year.”

The analyst likes EVgo for similar reasons as ChargePoint, noting its potential as a short squeeze candidate with 31% of the stock shorted. He points to its much higher expected sales growth of 55% this year compared to ChargePoint, despite starting from a lower base. He suggests owning both EVgo and ChargePoint due to the macro tailwinds for charging infrastructure.

“I like Evo ticker evgo for many of the same reasons though I think charge Point still holds that that competitive advantage in scale.”

The YouTuber suggests Evo (EVGO) as a short squeeze play, noting 35% short interest and 44% institutional ownership. While EV sales growth has slowed, Evo still boasts 50% revenue growth, is narrowing losses, and has sufficient cash. The broader EV market and federal infrastructure spending provide a positive long-term outlook, potentially squeezing shorts.

“while growth has slowed Evo is still booking 50% Revenue growth and is quickly narrowing that loss per share it has enough balance sheet cash to last for well over a year and that bigger picture to electric vehicles is still very good.”

The YouTuber is holding shares of EVgo, citing its industry leadership and advantage in the fast-charging space. Despite charging stocks continuing to trade lower, potential positive news from infrastructure bill funds and increased EV demand due to price wars could benefit the company.

“I'm holding shares of evgo here as an industry leadership and really advantage in the fast charging space.”

The YouTuber owns EVgo shares and plans to hold them, acknowledging the challenging market for EVs and potential further weakness due to economic conditions. However, they view it as a great long-term growth story, citing its pioneering role in DC fast charging, expected revenue increases of 119% this year and 215% next year, and ongoing infrastructure build-out and partnerships.

“I do own the shares I'll probably hold some of my money some of my investment until later to see if this shares do come down a little bit but still you know revenue is expected to increase at this stock 119 this year to 50 million up 215 percent next year to 153 million all right evigo is just the Pioneer in the faster DC charging segment and while last quarter's earnings have been a disappointment the company is building out those Partnerships and the infrastructure to be successful.”

The YouTuber recommends EVgo as a pure-play on fast DC charging demand, highlighting its new contract with GM and potential to benefit significantly from infrastructure bill funding. He notes its relatively cheaper valuation compared to peers, despite slower growth.

“the company is expected to grow revenue to 21 million dollars this year and add up to 320 new DC stalls.”

Travis Hoium advises investors to avoid EVgo due to its significant cash burn and lack of competitive advantage in the EV charging sector. He highlights a recent large stock sale to raise capital, indicating the company's financial unsustainability despite high revenue growth, as gross profit is insufficient to cover operating costs.

“this is an area where I would absolutely stay away as an investor and the fact that evigo raised as much money as they did last week is just a sign that this company is not going to be sustainable from a financial standpoint”