Stock Story -
What Happened?Shares of electric vehicle manufacturer Rivian (NASDAQ:RIVN) fell 6.4% in the morning session after Morgan Stanley (NYSE:MS) analyst Adam Jonas updated his rating on the stock of some of the auto manufacturers. Jonas downgraded Rivian from Overweight (Buy) to Equal-Weight (Hold) and lowered the price target from $16 to $13. The analyst expressed reservations regarding Rivian's ability to competitively improve its computing capabilities without putting too much pressure on its finances.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Rivian? Find out by reading the original article on StockStory, it’s free.
What The Market Is Telling UsRivian’s shares are extremely volatile and have had 56 moves greater than 5% over the last year. Rivian’s shares are very volatile and have had 56 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Rivian is down 46.9% since the beginning of the year, and at $11.18 per share, it is trading 54.1% below its 52-week high of $24.35 from December 2023. Investors who bought $1,000 worth of Rivian’s shares at the IPO in November 2021 would now be looking at an investment worth $111.14.
