![]() ![]() ![]() Thus, at the time of writing, Rivian is trading at $129.95 per share, and its market capitalization stands at >$100 billion - more than XPeng Inc. ![]() An indirect indication of this is the large number of underwriters and co-managers a direct indication of high demand could be seen by looking atĪ) the gradual increase in the price range (initially the company set a range of $57 to $62, then increased it to $72 and $74, and increased it again at the IPO),ī) the first-day opening price, which was well above the range that had already been increased three times, andĬ) the current short-term momentum of the stock as those who did not have the opportunity to participate in the offering began to actively buy the stock in hopes of "investing in a new Tesla ( TSLA) at the dawn of its rise."Īs demand met, the stock managed to rally 21.73% in the last few days after its IPO (in relation to its opening price on the first day of trading). In the case of RIVN, it was initially obvious that the stock was going to skyrocket - there was no need to build any models. If you have read my previous IPO articles, you may recall that I use several machine learning models in assessing the extent of underpricing (i.e., a stock's take-off on the first day of trading). As we saw with RIVN's IPO, the demand for the company was and is extremely high: I do not think it makes sense at this point to try to value Rivian Automotive ( NASDAQ: RIVN) using traditional valuation methods - even if we are right in pointing out an absurdly high valuation, the market may punish us because, in the end, it's all about supply and demand. Santiago/Getty Images News Introduction & Thesis ![]()
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