Rivian Stock: Should You Risk the Dip to Invest or Wait out for a Lower Price?
Rivian stock has been trading within the range of $80 to $100 in the week before it jumped over $6 from a low of $78.93 taking it to $85.10 (as of 12:00 EST). This is the lowest the stock has ever been and many investors were tempted to buy the dip. However, some investors decided to wait out for a lower price point, such as 50 or lower.
The 135 million shares in the IPO went at $78. There are at least 718 million other shares outstanding, with an average cost of $14.91 per share. If these stockholders sell at $50 per share, they will have more than tripled their money on their investment. As production issues continue, many investors feel that Rivian stock is still overvalued and will resume its decline in the near future.
Today, Rivian stock closed just over a dollar less than the high formed earlier in the day. Many investors are hoping to get dirt cheap shares in the $30s once earnings come out and show another target missed in terms of deliveries. Some investors are planning to buy 20,000 shares if they see something that would indicate Rivian stock is undervalued, usually between 45 to 50.
However, after seeing the stock dip to a record low of $61.24 before closing at $64.51, some technical signals indicate a further market (and Rivian) decline is less likely at this time. It may be a good time to start nibbling a little but one should not forget that an IPO is generally considered successful when it raises up to $12BN USD for the company. Stocks are also not measured as being failures after trading on a public exchange for a couple of months.
Rivian stock is still in its infancy and investors should be aware of the risks associated with investing in a new company. The market may not have fully priced in all the potential risks yet, so it’s important to do your own research before making any decisions.
It's also worth noting that Rivian has been able to raise over $8 billion from various sources since its inception, which indicates strong investor confidence despite some production issues. This could mean that there are more buyers than sellers at this time and if they decide to buy up shares when prices dip below 50 then we could see a quick rebound back towards 80 or higher.
In conclusion, while buying the dip can be tempting for many investors, one must always remember that an IPO is generally considered successful when it raises up to $12BN USD for the company and stocks are not measured as being failures after trading on a public exchange for only two months. Therefore, doing your own research before investing is essential as well as understanding all of the potential risks involved with such investments.
What happened to Rivian stock?
Rivian stock jumped over $6 from a low of $78.93 taking it to $85.10 (as of 12:00 EST). As markets opened yesterday it created that low, about the lowest the stock has ever been.
Did I buy the dip?
No. As stated earlier in another conversation, I'm holding out for 50 or lower. It may not get that low in which case I will never own Rivian stock. But then again, I won't lose any money by buying too high.
What is my personal feeling about Rivian stock?
My personal feeling is that Rivian stock is still overvalued and will resume its decline in the near future.
How much did the 135 million shares in the IPO go for?
The 135 million shares in the IPO went at $78.
How much did other shareholders pay on average for their shares?
There are at least 718 million other shares outstanding, and their owners only paid an average of $14.91 per share.
When will these stockholders be eligible to sell their shares?
These shares will be eligible for sale when the lock-up period ends. See page 82 at
What is my plan for buying Rivian stock?
I haven't bought any Rivian yet and think it may take several months for the initial enthusiasm to wear off. I tentatively am planning to buy 20,000 shares, but only if I see something that would indicate Rivian stock is undervalued. My generalized target range is 45 to 50, but this is just a general target. Meanwhile I don't have any plans to change my other holdings.
What was the all time low for Rivian stock?
The all time low was $61.24 before closing at $64.51
Is there a good time to start buying Rivian stock?
All of a sudden I'm getting technical signals that indicate a further market (and Rivian) decline is less likely at this time. Might be a good time to start nibbling a little.
Is Rivian's IPO considered successful?
Yes, an IPO is generally considered rather successful when the raise = $12BN USD for the company. How many other IPO's have raised $12BN USD? Your mileage may vary as an individual investor trading RIVN stock, but that doesn't change the fact that RIVN bankrolled $12BN USD.