Rivian Automotive Stock

Can Rivian Stock Rebound After Billionaire Backing?

Rivian Automotive Stock is trading higher this morning after George Soros revealed his funds new stake in the company. Soros Fund Management’s quarterly investment filing with the SEC included a 20 million share investment in Rivian, now worth approximately $1.3 Billion*.

The backing from George Soros comes after Rivian Automotive has struggled to maintain its IPO momentum. RIVN Stock is trading 35% lower over the past 6 months, currently trading at $64 a share. However, the downtrend coincides with a larger market sell off as EV stocks have been pummelled through the December – January period.

Why is Rivian Stock down 35% since IPO

Rivian Automotive Inc (NASDAQ:RIVN) stock shattered all expectations on Wallstreet following its IPO debut on November 9. The Amazon backed EV company issued 153 Million shares at a price of $78, which raised just shy of $12 Billion.

Shortly after Rivian Automotive’s debut, the Rivian Stock price skyrocketed to a 52 week high of $179.47. Rivian’s Market Capitalisation surpassed the likes of Ford and General Motors, raising eyebrows of many on Wallstreet.

However, following Rivian’s first financial reporting period which highlighted a widening net loss of $1.2 Billion, the stock dropped below $100 for the first time since its IPO. One of the reasons why Rivian Stock dropped was it was the first proper look investors have had into the companies books.

Can Rivian Stock Rebound After Billionaire Backing?
May 11, 2021, Brazil. In this photo illustration the Rivian logo seen displayed on a smartphone screen

Can Rivian Stock Bounce Back After Soro’s backing?

The substantial investment from the Soros Fund represents roughly 2% of all of Rivian shares outstanding. At the time of reporting, the investment was worth $2.1 Billion meaning the fund has already felt the heat of Rivian’s share price fall. Whether the fund sees Rivian as a long term play remains unknown, however investors have rallied behind the stock following the news.

Rivian Stock is currently trading 11.4% higher today, marking one of its best trading days in February so far. The company also announced in February that their fourth quarter and full year 2021 financial results will be released on March 10, 2022, after market close.

Investors will be focusing in on the companies sales, as Rivian disclosed that they had delivered 920 vehicles to date. In Q3, the company delivered its first 11 vehicles, suggesting Q4 should represent 909 vehicle sales. Wallstreet estimates Rivian to generate $60 Million in Q4.

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The content above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you. 

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