Is Blink Charging (BLNK) a Buy After the Recent Selloff?

The recent 10.9% plunge in Blink Charging (NASDAQ: BLNK) shares has sparked renewed debate about its investment potential. While the selloff reflects broader sector-wide anxieties, it also raises critical questions about the company's ability to navigate near-term challenges while capitalizing on the long-term growth of electric vehicle (EV) infrastructure. To assess whether BLNK is a buy post-selloff, we must dissect the interplay between sector vulnerabilities and the transformative potential of EV infrastructure.

Sector Vulnerabilities: A Volatile Landscape

The EV charging sector remains highly sensitive to macroeconomic and demand-side uncertainties. Blink's recent decline was catalyzed by a RBC Capital note highlighting weak demand growth for a competitor, ChargePoint. Though not directly targeting Blink, the report amplified sector-wide fears about slowing EV adoption and overvaluation. This volatility is emblematic of a sector still in its nascent stages, where investor sentiment can swing sharply on speculative cues.

Financially, Blink's Q3 2025 results underscore its fragility. While the company narrowly beat EPS estimates (-$0.10 vs. -$0.11 expected), revenue of $27.03 million fell short of the $30.08 million forecast. A steep negative net margin (-118.41%) and declining return on equity further highlight operational inefficiencies. Analysts remain divided, with one sell rating and an average price target of $2.13-suggesting limited upside in the near term.

Competition is another headwind. Charge Point Operators (CPOs) like EVgo and ChargePoint are leveraging government-backed financing and software-driven models to scale rapidly. Blink's vertically integrated approach, while potentially cost-effective, faces scrutiny in a market where hardware providers' share is projected to shrink from 46% today to 20% by 2040.

Long-Term Potential: A Sector on the Cusp of Transformation

Despite these challenges, the EV infrastructure market is poised for explosive growth. Government policies, such as the U.S. Infrastructure Investment and Jobs Act ($7.5 billion allocated) and the Inflation Reduction Act (tax credits for EVs), are turbocharging demand. By 2030, U.S. charge points are expected to surge from 4 million to 35 million, while global public chargers could exceed 5 million, driven by China's aggressive deployment and Southeast Asia's 50% EV sales growth in 2024.

Blink's strategic moves position it to benefit from this expansion. The acquisition of Zemetric, Inc. has expanded its fleet and commercial solutions, while a $1.05 billion Sourcewell contract ensures steady revenue from public sector entities through 2029. These initiatives align with the sector's shift toward at-work and on-the-go charging, which are among the fastest-growing segments.

Moreover, Blink's Q2 2025 results revealed resilience: service revenue grew 46% year-over-year to $11.8 million, and product revenue surged 73% sequentially, driven by demand for DC fast chargers. Such momentum suggests the company is gaining traction in a market where recurring revenue streams are critical for long-term sustainability.

Balancing Risks and Rewards

The key question for investors is whether Blink can scale efficiently while navigating near-term headwinds. Its vertically integrated model offers cost advantages but requires significant capital expenditure-a challenge in a sector where CPOs are increasingly dominating. Additionally, the company's reliance on U.S. government contracts exposes it to policy risks, though the Inflation Reduction Act's tax credits provide a buffer.

However, the sector's long-term trajectory is compelling. With EV sales projected to reach 20 million in 2025 (one in four new vehicles globally), and infrastructure demand outpacing supply, companies that adapt to evolving market dynamics-like Blink's recent strategic pivots-stand to gain. The Sourcewell contract, in particular, offers a stable revenue stream and credibility in public sector markets.

Conclusion: A Cautious Buy with Conditional Optimism

Blink Charging's recent selloff reflects legitimate concerns about sector volatility and operational inefficiencies. Yet, the company's strategic acquisitions, contract wins, and alignment with high-growth segments of the EV infrastructure market suggest it is not without merit. For investors with a long-term horizon, BLNK could represent a speculative buy, provided the company executes on its growth plans and capitalizes on the $7.5 billion U.S. infrastructure funding. However, the stock's current valuation-trading at $1.28, 49% below its 52-week high-implies a high-risk, high-reward profile. Prudent investors should monitor Blink's ability to improve margins and expand its service revenue, while keeping a close eye on sector-wide demand trends.