Who can forget the heady days of November, 2021? It all seems so long ago…
Rivian went public on Wednesday, marking the largest IPO in the United States since 2014. The electric pickup and SUV manufacturer priced its stock at $78 a share and raised about $12 billion, which the company plans to spend on boosting production and designing more vehicle models. While that price set Rivian’s valuation at around $70 billion, the carmaker’s market capitalization surged above $90 billion, after the stock started trading at nearly $107 a share on its first day.
I’m guessing there are more than a few investors out there wishing they had never heard of Rivian in the first place. After all, the price didn’t get to $179 unless someone ponied up that much money.
The trail blazer for electro-car-shock. No one wants them.
to quote Luke skywalker. Its a piece of junk
Everybody knows that enterpreneurs take their companies public when they’re ready to cash out—which is to say all the easy money in the business (assuming there ever was any) is gone.
Anybody who buys at an initial public offering deserves to lose every cent, and frequently does.
Anyone who bought Amazon shares at its IPO and held them now has more than 1000 times their investment.
TWAT
Again you show yer ignorance, most execs and board members are locked in by law, during , and for some time after an IPO.
A friend of mine, big exec, in a holding co. was unable to sell shares during covid period, as to not spook regular investors.
Buy high, sell low! Rinse and repeat.
you know who ponyed up the money for it? Amazon and Ford, you know who took a bath on it, Amazon and Ford….
it was overvalued at the start, and hasn’t gotten any better in the past 2 years
and if you were part of the IPO your shares were embargoed until recently, when you get to choose between taking huge losses or enjoying the sunk cost falacy, and hoping that it will somehow improve…
Check your numbers JD …. Ford did not take a bath on it.
Ford was in early and I think for about 500 million … their Rivian holdings soared to something like 13 billion after Rivian went public and that is the number Ford has to use in their financials at the end of 2021 … ie a 13 billion dollar increase in book value. For Q1 2022 Ford had to write down the book value based on the falling share price of Rivian … I think a 9+ billion dollar write down.
It would appear that Ford is still up several billion on their Rivian investment but Rivian is still falling and so Ford may yet lose money on Rivian.
I knew so many geniuses back in the 1990’s dot com bubble. I basked in schadenfreude as they all lost their shirts. At least they all quit bragging how smart and rich they were.
Ford and JP Morgan Chase both bought in to Rivian. They recently sold a significant chunk. May all such politically correct eco investing be a similar failure.
If I recall correctly … Ford Motor owns $105 Million shares of Rivian Stock … and sold $8 million shares today … which comes after the stock lockup period expired for early investors.
Rivian stock traded for a high of 179.47/share …
Virtue signaling is costly. Why? Because … science. Science doesn’t give a shit about one’s “virtue”
When did Pelosi cash out?
Biden? No, they just make consulting fees.
All these electric vehicles will fail. Including Tesla.
Tell us, Dennis, what companies do you like?
In my edition of Benjamin Graham’s famous book The Intelligent Investor, the co-author added a comment: which company is likely to make money–one that collects garbage or one that promises a cure for cancer?
Another thought from that same book was that you can’t go wrong taking a profit.
However, some people aren’t satisfied with that and want as much as possible. As one wag said: “Bulls make money. Bears make money. Pigs get slaughtered.”
Many years ago, I bought shares in a company that I was advised would “go up”. My broker at the time, being skeptical, asked me, “How much money can you afford to lose?” Sure enough, he was right and I lost my investment. I’ve avoided dodgy stocks ever since.
BAD
My prof said profile a company and buy and sell on the swings. Also he said set limits, on losses, and gains, and never wait past those limits. He had the class watch disney, which swings with the seasons.
During the dotcom days, I was working for Netscape, and so a fairly regular visitor to silicon valley.
There was a big hoarding that I always liked that I saw every time I drove back up towards SFO to catch my plane home. It simply read:
If your stock broker is so smart why is he still working for a living? — E*Trade
I know it was just marketing, but it was also, maybe inadvertently, the most insightful comment about the stock market that I ever read.
If your stock broker is so smart why is he still working for a living? — E*Trade
I first started as an investor with a certain brokerage. Over the years, it changed names through being merged or acquired by a number of different firms.
Eventually, it decided to dump its clients who didn’t have accounts worth a certain minimum. My broker at the time suggested I move over to its self-directed division because he thought I had enough knowledge and experience to manage my account by myself.
Unfortunately, the people running that division treated it like any other bank account and were completely clueless about how certain things were done. I knew more about what to do than they did.
A few months later, my father died and I inherited the account with his broker. I closed the one I had and moved it over.
The last broker I had with my original outfit made a lot of money for me. Most of his recommendations turned a profit and those were mainly blue-chip companies.
“The last broker I had with my original outfit made a lot of money for me.”
Most of my clients who played the stock market lost enough money that they gave up. I suspect a lot of brokers made up fake tips to have clients continuously buying and selling. They only got paid for buying and selling, not holding.
The rich people I know made it by doing something very well and scaling it while at the same time keeping themselves and their spouses out of the bars and casinos and not letting spending get ahead of earning.
Kemp, the RINO in Georgia gave Rivian a truck load of money, to move operations to Georgia , and his family and friends made a schiff load on selling land to the state of the Company to build on.
IPOs are generally bad bets. Average investors should probably stay clear completely.
I wait until the initial shakeout is over before I think of buying.
As far as I know ( and I read a lot ) surveys say that at least 98% of SUV and 4×4 truck owners never drive off-road.
But Rivian is targeting the off-road market…why???
from the linked article,
[…] a big difference between Rivian and Tesla is the type of electric vehicles the two companies are selling. After being founded in 2009 and remaining secretive for years, Rivian announced in 2018 that its first models would be a pickup truck and an SUV meant for off-road driving. […]
Add to that the fact that very few people can afford an expensive second vehicle that is not meant to be used on paved roads.
Why target such a microscopic market?
They want to fail or what ???
What bemused me when I went on the Rivian website was how ugly the car looked.
Also their slogan of preserving the environment while also selling off road vehicles.
They do realise that if they REALLY wanted to preserve the environment then maybe they should be viewing it at a distance rather then, I don’t know, driving through it.
Guess the environment can only be damaged Monday to Friday.
(also, hope you pack a GenSet in case you can’t find a charging station)
I have a very witty friend who noted that most women/some men go “off-roading” at the SuperStore Parking Lot!
It’s the end of companies that exist, garner large amounts of capital, and never earn a dime. The zombies are about to find a grave along with all those malinvestments by your pension funds.
I still remember GM, the company too big to fail. I jumped at the end so I didn’t ride it to zero but I lost my ass anyway. No automotive companies for me, never again.