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Should You Buy Rivian (RIVN) Stock Before May 7?

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Among the next companies scheduled to report earnings is Rivian (NASDAQ:RIVN). While shares are rising for the electric vehicle (EV) producer today, RIVN stock has struggled lately amid volatile economic conditions.

Many investors are watching closely as Rivian prepares to report earnings for the first quarter of 2024. The last earnings report of 2023 provided investors with some cause for optimism. As InvestorPlace contributor David Moadel notes: “Starting with the top-line results, Rivian’s revenue improved dramatically from $663 million in the year-earlier quarter to $1.3 billion in Q4 2023. This result beat Wall Street’s call for $1.28 billion.”

Unfortunately, from there, RIVN stock quickly plunged and proceeded to struggle for months. It hasn’t helped that the company announced multiple rounds of layoffs since the year began, and Wall Street sentiment toward the company has trended downward. Now, many investors are watching Rivian carefully to see what its next earnings report, scheduled for May 7, will reveal.

Is a RIVN Stock a Buy Pre-Earnings?

With Rivian poised to report crucial earnings, speculation is rising as to whether or not RIVN stock is a buy before May 7. While there are reasons both for optimism and pessimism regarding the struggling company, when it comes to Rivian, the good outweighs the bad. Seeking Alpha recently reported on the many positive attributes of RIVN stock that investors shouldn’t ignore. As it states:

“Rivian has a few aces up its sleeves and a successful strategy can help improve the stock trajectory. It has recently announced massive layoffs, which should improve the gross margins. We should start seeing positive impact of these layoffs in the upcoming quarterly earnings. Rivian’s new R2 model has received good reviews and high booking order. The company is also focusing on improving profitability by building a better supply chain and finding cost reductions in production.”

Additionally, the company boasts high case reserves that should help it continue expanding at least through 2024. It finished 2023 with $10.4 billion in cash reserves, which, as InvestorPlace contributor Andy Kim notes, is significantly higher than many other startups in the EV space. At a time when Rivian’s new models are keeping it in the spotlight and helping push shares up, this is of paramount importance, as it can help the automaker keep pumping up lower-cost vehicles.

It isn’t just Rivian that things are looking good for. The entire EV sector looks primed for a comeback as market conditions continue to improve. According to The Economist, EV demand should be expected to rebound in 2024, and RIVN stock is in an excellent position to benefit as it does.

Rivian’s Road Ahead

As May 7 approaches, RIVN stock will likely remain in the spotlight. The company is making slow but steady progress, reminding investors not to count it out yet. If it reports positive earnings, shares will likely surge and continue rising as momentum for the EV sector continues to spread. A positive Rivian earnings report will be the bellwether for the entire sector that investors want to see.

Overall, it is clear that RIVN stock is a buy pre-earnings, despite the naysayers who think the company has further to fall. Rivian remains a strong player in the EV space with a niche that will give it an advantage over many competitors, both pre and post-earnings.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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