PreMarket Prep Stock Of The Day: Rivian Automotive's Rough Ride

It has been rough going in the SPAC/IPO market in 2022 for most issues. One of the worst performers has been Rivian Automotive Inc RIVN, which is the PreMarket Prep Stock of the Day.

Off To A Hot Start: Rivian made its debut on Wall Street on Nov. 10, with the first print at $106.75. It went on to make an intraday low at $95.20 and ended the inaugural session at $100.73.

What it did over the next four sessions was nothing short of spectacular, rallying all the way to $179.74 and posting its all-time closing high at $172.01 on Nov. 16.

Wheels Come Off The Rally: Within a few weeks of peaking, the issue was laboring at the $100 area, which is the area from which the rally emanated. Once the issue lost triple digits for good, falling from $101.39 to $90.01 on Jan. 5, the pace of the decline greatly accelerated.

The crescendo of selling did not end until the issue made its all-time low on March 15 at $33.46.

Rivian's Dead Cat Bounce: Off that low, Rivian was able to rebound to $56.76 by March 30, and the high for the rebound was posted the day prior at $53.88. It was on a five-day losing streak when it ended Tuesday’s session at $42.19.

Rivian's Production Update And PMP's Take: After the close on Tuesday, the company stated in a SEC filing that its preliminary number for first-quarter vehicle deliveries is 1,227. 

Rivian said it now believes it is well-positioned to deliver on the 25,000 annual production guidance figure provided during the fourth-quarter earnings call on March 10.

To say the least, the PMP crew was not impressed with the news, and

co-host Dennis Dick was the least impressed.

“On days like this, individual stock news just does not matter,” he said. 

Dick went on to analyze the issue from a long-term fundamental perspective and was astounded, even at $40, how overvalued the company may be.

“At a $38-billion valuation, it is worth more than Ford and hopes to produce 25,000 cars,” he said. 

The discussion on Rivian from Wednesday’s show can be found here:

RIVN Price Action: After a higher open ($43.30 vs. $42.19), the issue went a nickel higher and sharply reversed course Wednesday.

The stock was down 2.94% at $40.95 Wednesday afternoon, according to Benzinga Pro.