Name of opportunity: 👀
Rivian Automotive Inc
Volatility in the market: 😵
Rivian stock has dropped 4.32% in the past day, after reporting a worse loss than had been expected in Q2, losing $1.46 billion. However, Rivian’s Q2 revenue exceeded the Wall Street estimate of $1.13 billion, reaching $1.158 billion. That’s an increase of 3% from the year ago period but it is a drop of 4% from the previous quarter.
Analysts at The Motley Fool have suggested the drop in Rivian’s stock price could be part of a wider pattern, which saw both the S&P 500 Index and the Nasdaq Composite fall since mid July, when both indexes were performing very highly.
How hot is this investment opportunity? 🔥🔥🔥
Rivian is currently rated a ‘Buy’ and analysts predict its price will increase from $14.16 to $15.48 in the next 12 months. If you invested $1000, you might profit $45.83.
There are some good things in the pipeline for Rivian, as in June, Volkswagen and the EV maker agreed to a joint automobile software venture, into which VW will put as much as US$5 billion. $1 billion will be the initial investment, which is expected to be followed by the remaining $4 billion.
Rivian is also set to launch its R2 in 2026, a more affordable model, which will be followed by the R3. These models will be launched internationally too, giving Rivian a much wider consumer base than its current market of Canada and the U.S.
Charge it up: 🔌
We’ve covered Rivian before on Hot Stocks, most recently putting it in contrast against Tesla, the biggest name in electric vehicles in the American market - we described how at the time, back in April, Tesla was only recommended as a ‘Hold’ while Rivian was a ‘Buy’, as it is today. Rivian expects to turn a gross profit this year. This company, founded in 2009, designs, develops and manufactures electric vehicles and accessories. It sells its vehicles directly to customers in the consumer and commercial markets.
Which neme?: 🔍
‘Electric Vehicles’, ‘Meme Stocks’ and ‘This Week’s Earnings’
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