Why Rivian Stock jumped and then fell on Monday
Rivian Automotive (NASDAQ: RIVN) stocks went on a bit of a rollercoaster ride on Monday morning. After climbing as high as 4.9% to start the day, the stock reversed course, falling as much as 5.5% below Friday’s closing price. As of 2:02 p.m. ET, the stock remained down 3.7% on the day.
Rivian’s stock was the subject of earnings news late last week, but not in the traditional sense. It was not the Rivian financial update that was published, but that of the first investors Amazon and Ford Motor Company. Both companies posted strong gains in the fourth quarter of 2021 from their stakes in Rivian. But on Friday night a popular investor slammed Rivian stock, saying he didn’t think it would be next. You’re here.
CNBC’s Jim Cramer said on his mad money Friday night program that he disagrees with Rivian becoming the next Tesla, and that he would not buy Rivian stock here. He added that he thinks “it’s going to be a very unsexy truck builder.”
The comments came after Amazon and Ford posted strong fourth-quarter gains from their holdings in Rivian late last week. Amazon revealed an $11.8 billion pretax gain on Rivian’s stock valuation after its IPO last fall, while Ford posted an $8.2 billion gain in the fourth quarter.
But Rivian shares have plunged 43% since the start of 2022, and these earnings reports were just another reminder of that decline. And the companies could see a reversal of those previous gains after the first quarter, depending on where Rivian is trading at the end of March 2022.
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