How to Buy Blink Charging (BLNK) Stock

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Contributor, Benzinga
May 12, 2021

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Blink Charging (NASDAQ: BLNK) designs, manufactures, owns and operates EV Charging stations. The company is paving the way for the adoption of EV’s through the deployment and operation of EV charging infrastructure globally.

Yes, you can make individual EV plays with Tesla (NASDAQ: TSLA) and Nio (NYSE: NIO). But consumer tastes can be fickle, and the necessity of refueling results in the bullishness in BNLK stock.

You’ll find no shortage of analytical content promoting the bullish thesis of Blink Charging stock. However, if this is your first time participating in the equities market, you want to familiarize yourself with how to buy stocks.

Unlike other markets, stock trading isn’t just a matter of showing up and purchasing shares. Check out a few key concepts to know before starting your journey with BLNK.

  1. Pick a brokerage.

    First, choose a brokerage with which you will conduct the business of equities trading. Thanks to tremendous interest for investment opportunities, you have ample choices available. The brokerage industry also offers many incentives like commission-free trading and educational material.

    The decision to choose from the best brokers comes down to personal preference. For example, if your interest in the market is to build wealth over time, then a mobile trading app may suit your lifestyle.

    If you anticipate that you will either trade for a living or pursue advanced market opportunities – say international stocks – then a platform with robust offerings is the best road to take.

  2. Decide how many shares you want.

    Deciding how much you want to invest in Blink Charging stock is a personal decision. It encompasses factors such as risk tolerance and budget size. With growth stocks like BLNK, you’ll generally want to avoid going in too heavily.

    Once you’ve decided the dollar amount you want to invest, simply take that figure and divide it by the stock price. The whole number translates to your share count purchase.

    For instance, if you’re wagering $1,000 on BLNK stock, you can acquire 23 shares at the time of writing ($1,000 / $42.54 = 23.5). 

    As a side note, some brokers offer fractional share ownership. However, this is not a standard feature across the board, so you’ll want to keep that in mind when shopping for brokers.

  3. Choose your order type.

    Because stocks constantly fluctuate in value during normal session hours, you can’t just buy equities at their market price. Instead, you must choose your order type, which represents a particular method on how you acquire the target stock.

    Below are the different order types available and key terminologies with which you should become familiar.

    Bid: The bid represents the maximum price a buyer is willing to pay for a stock. It is always lower than the ask.
    Ask: On the flipside, the ask is the lowest price that a seller will accept. The ask will always be higher than the bid.
    Spread: The difference between the bid and ask price is called the spread. The bid-ask spread is important because it represents how market makers earn their living profiting from the variance between stock acquisition and distribution prices.
    Limit order: If you want maximum control and transparency in your trades, you should elect limit orders. This order type executes at your predetermined price. However, the downside is that the target stock is not guaranteed to reach this specific price, potentially leaving your order request unfulfilled.
    Market order: If you wish to buy (or sell) a stock and have a guarantee that the order will execute within normal session hours, the market order is your best option. This order type executes at the next available price. The drawback is the order fulfills at the price least favorable to you – buy orders on the ask, sell orders on the bid.
    Stop-loss order: You can think of a stop-loss order as a protective market order. This order type exits you out of your position at a predetermined price or the next available price, whichever comes first. However, the risk with stop-loss orders is that they can automatically fulfill at a far lower price than you anticipated during gap-down sessions (sessions that open at a much lower price than the previous session’s closing price).
    Stop-limit order: Stop-limit orders prevent the surprises associated with gap-down sessions because they only fulfill at a predetermined price. As with limit orders, stop-limit orders afford maximum transparency and control. But the risk is that the stock may not hit the predetermined price, potentially exposing you to additional volatility.

  4. Execute your trade. 

    Now that you know the core concepts, it’s time to execute your trade. Growth firms like Blink Charging tend to have fast-moving shares, especially if a material news item has impacted trading. In such a situation, you may want to place a market order.

    However, you never know at what price a market order will fulfill the request until it executes. Therefore, if you want to carefully manage your entry and exit points, choose a limit order.

    Both order types are easy to execute. With market orders, select your action type (“buy” or “sell”), indicate how many shares you wish to purchase (or sell) and send in the request. Limit orders are identical to market orders with the exception of an added step to indicate which price you want to fulfill the order.

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With so many eyes glued to electric vehicles, demand for EV charging stations organically exploded. In 2020, BLNK returned more than 2,100% for shareholders, an absolutely blistering performance.

Because of its broad exposure to the EV market and the need for an infrastructure rollout to bolster the transition to electric propulsion, many investors are still piling into BLNK stock. However, prospective buyers should note the wildness in the present price action.

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One pivotal factor to consider before buying BLNK is the balance between the anticipated growth of the underlying EV sector versus the growth in competition for Blink Charging.

  • Selling those tickets: While certain electric vehicle companies have tremendous appeal among consumers, it’s difficult to know which EV brand will stand the test of time. After all, EVs represent a burgeoning market and that carries risk of the unknown. But the sector itself should perform well, meaning that charging stations will be in hot demand.
  • Infrastructure is critical: On paper, Blink Charging stock is a “downwind” investment because it won’t exist without the presence of electric vehicles. But in order for EVs to change the paradigm of transportation, ample access to public charging stations is a necessity. Therefore, BLNK stock is on equal footing with direct EV investments.
  • Aligned with popular politics: With the election of President Joe Biden came a subtle confirmation that more voters care about environmental issues than in prior election cycles. As a clean-energy facilitator, Blink Charging caters well to those who think “green” about their portfolio.
  • EVs are expensive: While many analysts regard electric vehicles as the future of transportation, when that future is remains a big question mark. For now and perhaps for the intermediate term, current-generation EVs are incredibly expensive. Among major automakers, the cheapest EV you can buy is the Mini Cooper SE Electric Hardtop. Even so, it costs a staggering $29,900 before federal tax subsidies.
  • Geographic isolation: Because EVs are so costly, Blink Charging may be limited to where it can expand. Essentially, the company’s business model is largely only viable in major metropolitan areas with much higher-than-average household income levels. Though the EV cost structure can change, it may not change that quickly.
  • Sudden rethink: Due to the Texas winter storm, the spike in demand for energy sadly coincided with infrastructural vulnerabilities and mismanagement. That led to widespread blackouts in the Lone Star State, which effectively nullifies the benefits of EV ownership. On-the-fence consumers may now be reconsidering their EV purchase intentions.

Bank on EVs

Among transportation experts, the general consensus is that electric vehicles will eventually replace combustion-engine cars. But figuring out which brand will become the alpha dog in the competitive automotive arena is a challenging task. 

Fortunately, with a stake in Blink Charging stock, you’re banking on the EV industry, which is a significantly more palatable endeavor.

You still want to make sure that you don’t wager more than you can afford to lose. While BLNK stock has upside potential, its price action has been all over the map recently.