Why Are Rivian (RIVN) Shares Soaring Today
Shares of electric vehicle manufacturer Rivian (NASDAQ:RIVN) jumped 6% in the afternoon session after the company announced it will establish a new East Coast headquarters in Atlanta.
The new office, expected to open in late 2025, will bring the EV automaker closer to its new $5 billion manufacturing plant currently under construction in Georgia. The headquarters will eventually house up to 500 employees, deepening the company's operational footprint in the U.S. Southeast. This strategic expansion reinforces Rivian's commitment to the region as it prepares to launch its next-generation, more affordable R2 and R3 vehicle platforms.
Broader economic news also provided a tailwind for the stock. The consumer discretionary sector, which includes automakers, received a boost from a new report showing that U.S. retail sales rose a better-than-expected 0.6% in June. This suggests consumer spending remains strong, a positive sign for companies selling big-ticket items like electric vehicles.
Is now the time to buy Rivian? Access our full analysis report here, it's free.
What Is The Market Telling Us
Rivian's shares are extremely volatile and have had 36 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.
The previous big move we wrote about was 4 days ago when the stock dropped 3.1% after Guggenheim analyst Ronald Jewsikow moved the electric vehicle maker's rating to 'Neutral' from 'Buy'. The downgrade reflects growing concerns over weakening demand for Rivian's current R1T pickup and R1S SUV models. Guggenheim also pointed to headwinds from recent U.S. policy changes, including the elimination of the $7,500 federal EV tax credit, which could negatively impact future sales and profitability. The firm lowered its 2028 sales forecast for Rivian significantly, from 185,000 units to 150,000, citing the softer demand for the R1 platform as a potential negative indicator for the upcoming, lower-priced R2 and R3 models.
Rivian is up 4.3% since the beginning of the year, but at $13.82 per share, it is still trading 21% below its 52-week high of $17.50 from July 2024. Investors who bought $1,000 worth of Rivian's shares at the IPO in November 2021 would now be looking at an investment worth $137.24.
Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Peloton Just Shocked Wall Street -- And It's Not About a New Bike
Peloton (NASDAQ:PTON) shares jumped by nearly 12% at 8.53am in premarket after the company posted a surprise profit and rolled out a tighter cost-control strategy that could reshape its post-COVID narrative. CEO Peter Sternwho joined in January after a stint at Fordhas been aggressively reshaping the business to combat sluggish demand for its high-end bikes and treadmills. That effort appears to be gaining momentum. Q4 revenue came in at $606.9 million, beating analyst estimates of $579.8 million. Even more notably, earnings landed at 5 cents per share, ahead of the expected 6-cent loss. Warning! GuruFocus has detected 7 Warning Signs with PTON. Signs of operational progress are emerging across the board. Peloton plans to cut 6% of its global workforce, relocate select offices, and slash indirect costsmoves that could save $100 million over the next fiscal year. The company's focus on profitability is already showing up in the numbers: operating expenses dropped 20% year over year, and general and administrative costs were down 33%. Gross margin from connected fitness products improved by 900 basis points to 17.3%, helping drive a 96% increase in gross profit for the segment. These improvements suggest Stern's playbook may be starting to deliver. Looking ahead, Peloton expects fiscal 2026 revenue to land between $2.4 billion and $2.5 billionslightly ahead of the $2.41 billion Wall Street was modeling, according to LSEG. However, the company flagged a potential $65 million hit to free cash flow due to tariffs and said it plans to offset that through price adjustments. While the road back to growth may still have hurdles, investors may view this update as a meaningful step forward. The turnaround story isn't done, but it's no longer on pause. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
22 minutes ago
- Yahoo
Why Shares of Nebius Group Are Skyrocketing Today
Key Points Nebius Group reported strong second-quarter financial results. Management upwardly revised the annualized revenue run rate forecast for the end of 2025. With Nebius stock soaring in 2025, investors looking for cloud computing exposure may prefer an ETF at this point. 10 stocks we like better than Nebius Group › Investors have their heads in the clouds today -- or rather, they have their minds on a leading cloud stock. Nebius Group (NASDAQ: NBIS), developer of a cloud platform uniquely suited for artificial intelligence (AI) computing, announced second-quarter 2025 earnings, and investors are thrilled with the results. As of 10:27 a.m. ET on Thursday, shares of Nebius were up 24.5%. It's not only beating analysts' estimates that has investors excited Beating analysts' expectations for $101.2 million on the top line, Nebius posted second-quarter revenue of $105.1 million. Similarly, the company reported a $0.38 loss per share, narrower than the $0.42 loss per share that one analyst had been expecting. But it's management's outlook for the remainder of 2025 that has investors particularly excited. Because of what it credited in its letter to shareholders as "strong momentum," management upwardly revised the annualized revenue run-rate guidance for the end of 2025 to a range of $900 million to $1.1 billion from the original projection of $750 million to $1 billion. Addressing the company's strong prospects, CEO Arkady Volozh said: "Demand for AI infrastructure -- compute, software and services -- is only going to get stronger as use cases multiply. We are aggressively scaling up capacity to capture this substantial opportunity and are in the process of securing more than 1 GW of power by the end of 2026." Is it too late to buy this AI hyperscaler after today? It's not only semiconductor companies like Nvidia and Taiwan Semiconductor Manufacturing that investors are focusing on for AI exposure; they have recognized the appeal of AI hyperscalers like Nebius, which provide the crucial backbone for AI computing to occur. Shares have soared more than 140% since the start of the year, and they may be running out of room to race higher. For those who are eager to buy Nebius stock, it may be better to sit on the sidelines for the time being or consider a cloud computing exchange-traded fund to take a more conservative approach. Do the experts think Nebius Group is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Nebius Group make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,047% vs. just 181% for the S&P — that is beating the market by 865.26%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Nebius Group. The Motley Fool has a disclosure policy. Why Shares of Nebius Group Are Skyrocketing Today was originally published by The Motley Fool Sign in to access your portfolio
Business Journals
23 minutes ago
- Business Journals
Up, up and away: Firefly Aerospace has huge IPO as investors nab part of the space economy
An Austin area aerospace company went public on the Nasdaq on Aug. 7. In this story, we explore how the company's price per share continued to increase in the past couple weeks as it notched more big wins. The article includes insights about how the company celebrated in New York and Texas, as well as comments from a Nasdaq leader on what this big IPO may mean for the broader market.
