In the US, there is a green energy company named Blink Charging Inc. which operates a charging station to charge electric vehicles. In its 11-year history, the company has never had a profit of one rupee, along with the revenue of the company is also negligible, due to which the company had said that in the last year, 2020, it could go bankrupt due to financial constraints, such Despite its poor performance, Blink remains the hottest stock in the US. The company’s stocks have risen 3000% in the last 8 months and have outpaced giants like Tesla of the company in terms of stock valuation.
After reading the above things, they were not surprised. But these things are 100 percent true. There is so much craze on Blink Charging stocks on the US Stock Exchange that it can be understood that there are a total of 2700 companies listed on the NYSE Stock Exchange with a market capitalization of more than $ 1 billion. But out of these 2700 companies, only 7 are such companies whose stocks have increased more than BLINK in the last 1 year.
The m-cap of Blink Charging, a company on the verge of bankruptcy a year ago, reached $ 2.17 billion on Saturday. The company’s stocks are 481 times so overvalued. That is, the enterprise value-to-sales ratio of the company is 481. How much the company is overvalued can be gauged from the fact that Tesla’s enterprise value to sales ratio is only 26, while it is such a large and successful company.
Due to this, stocks of the company rose so fast
US investors feel that Blink Charging is a green energy company, so investing in it will be beneficial for the future. Whereas, Citron Research says that everything the company does is wrong. The company has no revenue and its management is negative. Also, it is difficult to earn money from charging electric vehicles, as it is not a lucrative business. The company raised $ 232 million by issuing shares, taking advantage of its high valuation. The company’s revenue was just $ 5.5 million in 2020, but its market valuation has exceeded $ 2 billion. The company’s revenue was less than $ 1 million in Q3 of 2020.