Rivian Automotive Inc. ($RIVN) Earnings (Q1 FY22)

 Rivian Automotive Inc. ($RIVN) Earnings and Opinion:


Rivian is a company in the Consumer Cyclical sector and operates in the Auto Manufacturers industry. The company develops and sells electric vehicles and accessories. Rivian was founded in 2009 and is currently headquartered in San Jose, California. The company was first traded on the stock market in November of 2021.

Rivian EPS and Revenue (Q1 FY22):

  • EPS of -$1.43 beating expectations of -$1.44
  • Revenue of $95M missing expectations of $130.5M
Rivian Q1 Financial Highlights:
  • Net loss of $1.59B
  • 90,000 reservations total now
  • Average purchase price of $93,000
Opinion:
Rivian was a hot EV maker that recently went public, and its IPO was hot. The company traded almost to $200 a share, but it came back down to earth when the financials and earnings were taken into account. The hype around this company was absurd, but that was due to the fact that Ford and Amazon had investments in them. Rivian is slowly coming along with some deliveries finally happening and reservations growing in each quarter. This is good signs for long-time investors of this company, I just hope they didn't get in at the all-time high stock price. If that was the case, it will be a while for the stock to return to those levels. The stock is currently down 83% from its IPO price and trading around its all-time low. What does this mean? Well I think the company still has a lot to prove and we still need to see the performance and the longevity of their vehicles. It can be a very successful EV maker if it fulfills both of those categories successfully. However, a lot of risk is built up with this stock and I think high reward can be likely. I am not a huge fan of this company though, I think it is also important to notice that Ford is starting to sell out of its position. Too much hype is surrounded around this company for what it is really worth. The valuations are absurd and the company needs to prove a lot more than it has for me to become an investor of them. I think opportunities are more abundant in other companies and will return you more and in a shorter time period than Rivian will.

*Information from Rivian, Google, Yahoo Finance, CMLVIZ

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