Should You Buy Rivian Stock While It's Below $20?
Rivian Automotive (NASDAQ: RIVN) shares have traded sideways for years, even though there has been plenty of volatility along the way. Surprisingly, the company's sales have grown tremendously over that time. Two years ago, Rivian stock traded roughly where the stock trades today, and yet revenue has more than doubled since then.In my view, the main issue hasn't been company missteps, but a simple mispricing of the stock by the market. In 2023, shares traded as high as 8 times sales. Today, shares are valued at just 3.2 times sales. So while sales have increased tremendously, the price the market is willing to pay for those sales has dropped in turn, resulting in very little net profit for shareholders. But here's the thing: Rivian is about to experience a huge resurgence in growth, even though shares are priced at a historical discount. This could be a great opportunity now to buy shares for under $20.Continue reading
Rivian Automotive (NASDAQ: RIVN) shares have traded sideways for years, even though there has been plenty of volatility along the way. Surprisingly, the company's sales have grown tremendously over that time. Two years ago, Rivian stock traded roughly where the stock trades today, and yet revenue has more than doubled since then.
In my view, the main issue hasn't been company missteps, but a simple mispricing of the stock by the market. In 2023, shares traded as high as 8 times sales. Today, shares are valued at just 3.2 times sales. So while sales have increased tremendously, the price the market is willing to pay for those sales has dropped in turn, resulting in very little net profit for shareholders.
But here's the thing: Rivian is about to experience a huge resurgence in growth, even though shares are priced at a historical discount. This could be a great opportunity now to buy shares for under $20.
