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Why is RIVN market cap ($12 bln) only equal to cash on hand??

Rivianation

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What about the value of the factory and pre-order list and the revenue potential, intellectual property, etc etc ?? Don't these things have value now?
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quartz

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It's all about profitability these days.
 

jjswan33

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Sadly lots of companies are like that, the market is irrational some times IMO.

I am still hung up on the fact that Lucid has a larger market cap than Rivian despite a much worst financial/demand picture and with a product that isn't compelling as any of Rivians (again my opinion).

I guess hold and be patient....
 

NY_Rob

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It's all about profitability these days.
And quick or better yet instant profitability! The market no longer has any interest in building long term value. It's all... now....now...now!
 
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Rivianation

Rivianation

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And quick or better yet instant profitability! The market no longer has any interest in building long term value. It's all... now....now...now!
But the arrow to profitability is pointing up according to investment community. Are investors looking for zero risk? Wouldn't that be nice.

Rivian R1T R1S Why is RIVN market cap ($12 bln) only equal to cash on hand?? 1685549442537
 

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NY_Rob

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But the arrow to profitability is pointing up according to investment community. Are investors looking for zero risk? Wouldn't that be nice.

1685549442537.png
They want that red arrow pointing up as close to a 90% angle as possible, instant profitability... instant rewards otherwise you get punished.
 

Biturbowned

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There are way more productive things to do than try to find logic in this market imo
 

quartz

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But the arrow to profitability is pointing up according to investment community. Are investors looking for zero risk? Wouldn't that be nice.

1685549442537.png
Investors are looking for profitable growth in this macro cycle. Most of that is dependent on R2 ramp and there are some huge milestones Rivian needs to hit before they get there.
 

Biturbowned

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Some crazy activity going on after hours, this could be interesting.
 

Indy avocado

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There's a cost to own the factory and land
There's a cost to employees
There's currently a net negative value for each truck sold
I believe they have various debts with favorable finance interest rates (hence not being paid off)

A company can certainly be worth less than cash on hand.
 

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docwhiz

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Don't worry about stock price even if you're an investor (you should only be a long term investor).
Look at the fundamentals of the company. Products, investment, management, employees, customers.
Tesla stock has been similar. Wild swings in the market but the company is solid.
 

MountainBikeDude

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If only they had Trevor Milton pumping their stock 😉

📈 #BagerFierce 📉
 

IPTV65

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Don't worry about stock price even if you're an investor (you should only be a long term investor).
Look at the fundamentals of the company. Products, investment, management, employees, customers.
Tesla stock has been similar. Wild swings in the market but the company is solid.
I forgot I even owned Rivian stock till I saw this!
 

SASSquatch

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What about the value of the factory and pre-order list and the revenue potential, intellectual property, etc etc ?? Don't these things have value now?
If you think Rivian is way undervalued, then put your money where your mouth is and BUY, BUY, BUY, and help raise the share price.

I'm sitting on $20K in losses so help a brother out...
 

BigSkies

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The value of a company is the present value of its future cash flows.

Cash flow is still far in the future and highly speculative. And it’s likely they’ll need extra capital to get there, diluting existing stock holders.

I very much want Rivian to succeed, but they’ve still got a massive amount of work and time to make that happen.
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