Why Volta’s shares jumped again today
Sometimes stocks take a break the day after their pop. Electric Vehicle (EV) Charging Network Company Shares Volta (NYSE: VLTA) climbed nearly 20% yesterday without company-specific news, as the sector benefited from the passage of a federal infrastructure bill. But Volta is not returning those gains today, and in fact, it jumped over 13% early in Tuesday. As of 11:50 a.m. EST, Volta shares were still up 4.1% on the day.
Virtually the entire electric vehicle industry soared yesterday in reaction to Friday night’s vote in the House of Representatives that ultimately passed a bipartisan infrastructure bill that has been at the center of many political wrangling. This bill includes $ 7.5 billion specifically allocated to the construction of charging infrastructure to promote ownership of electric vehicles.
The spending is expected to benefit Volta, which locates its charging stations near shopping centers, including malls, stadiums, cinemas and grocery stores. Each of its chargers includes a large monitor where local businesses can advertise to consumers.
The screens allow theaters to display schedules of upcoming shows or trailers, malls and grocery stores to advertise stores or highlight items for sale, and municipalities to broadcast community messages. Volta generates additional revenue through advertising, and businesses can advertise as they spend.
Investments in infrastructure should help the company develop its network. And investors continued to buy stocks today in anticipation of what the company has to say in its next financial update, scheduled for tomorrow after the market closes.
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