Whether or not you should invest in Rivian stock depends on your risk tolerance, your portfolio size and investing goals, experience with the markets, and other personal circumstances. Whether Rivian stock is a good investment depends on your investment goals and how you evaluate the company. Rivian is a publicly traded company, meaning that you can purchase Rivian shares through your regular brokerage.
You can trade shares of Rivian just like any other publicly-traded company on the stock market. While you may not have received Rivian shares at their IPO price, you still may be able to purchase shares in the open market. If you did not get shares, you will need to wait until Rivian starts trading in order to purchase shares.
If investing in shares before the IPO or at the IPO is not a good fit, you may want to invest directly, buying shares of a public company with a significant stake in Rivian, like Ford. There are four ways that you may be able to buy shares in a pre-IPO stock like Rivian. You may be able to buy shares of Rivian, along with well-known companies such as Apple, Amazon, and Tesla, using its fractional-share function. Retail investors can purchase shares of Rivian Automotive on the secondary market, just as they can buy shares in other publicly traded companies.
Until Rivian shares get a bit of a track record after their highly anticipated IPO in November, investors will have no clear buying points. Companies typically time their IPOs to coincide with favorable market sentiment, and there is no way of knowing when Rivian is going to time its IPO. Some analyses project a major run-up for Rivian stock over the next year, but this might not materialize unless the company is able to ramp up its output quickly.
At about $50 billion, the stock Ford (F) could benefit the most from the increase in valuations that Rivian has seen leading up to and since the Rivian IPO. Given its impressive roster of well-known investors, the potential of Rivians IPO may prove substantial to those lucky enough to purchase shares on day one. The expectation that the price of Rivians stock will likely almost double following the Rivians IPO is driving many investors to explore ways of investing in Rivians shares. As of its Jan. 19 investment round, Rivian had a net worth estimated at $27.6 billion, though it is possible its market valuation will increase to $50 billion following the public offering.
Rivian Automotive Stock
This was after Rivian Automotives IPO had a price of $78 a share, which valued Rivian at $66.5 billion, higher than carmakers GM and Ford. Rivian opened above the $78 a share at $100.71, followed by a week-long surge up to $170. They offered 153 million shares priced at $ 78, raising over $11 billion. Rivian held its IPO during the height of excitement about electric car stocks, enthusiasm reflected in wildly unrealistic Rivian valuations.
The awkward U-turn in valuations led to a repudiation and an apology by Rivian CEO RJ Scaringe, but did little to help the bruised companys reputation and share price, since reputational harm met pessimism among investors about whether Rivian could successfully pass along rising costs to customers.
By the end of day one trading, every Rivian share was worth $100, giving Rivian a $86 billion market cap, larger than automotive legend Ford Motor Company, one of its major supporters, along with retail juggernaut Amazon. In its Nov. 1 SEC filing, Rivian Automotive disclosed it was targeting a valuation above $60bn for its upcoming week-old initial public offering (IPO), with shares priced at $57 to $62 per unit.
A simpler example is the case in which you bought $1,000 worth of Rivian shares on the day of the companys IPO, and held onto $1 till today. Since it is nearly always difficult to buy shares in an IPO, the only safe way to hold Rivian shares is to wait until after an IPO has closed.
If you invest in a smart portfolio on eToro, you get immediate exposure to a variety of electric vehicle stock at the same time, including Rivian. This holding allows you to invest in 30 companies from the EV industry at once, including Rivian Rivian, Nio, Tesla, and Li Auto. Rivian is owned by a mix of companies like Amazon and Ford, individuals like founder RJ Scaringe, and financial institutions like investment giants T. Rowe Price and Soros Fund Management.
Wrapping Up On Rivian Stock
While there is no guarantee that you will earn any money from your new issued shares, the Rivian business does demonstrate significant future growth potential, and many investors have seen their initial public offering shares become profitable investments over time. Poor investor confidence in growth stocks — including ones that are not yet turning a profit — coupled with rising inflationary pressures that are driving up the cost of materials, as well as the subsequent drop in demand, makes companies such as Rivians “pass-through” territory for many investors.