Business Insider IPO recommendation article - don't buy at target price says equity research firm

[jeeden]

Absolutely normal. This has nothing to do with the fundamentals of the business. Price is based on demand from large institutions and retail to a lesser degree. If the allocated shares are oversubscribed, this is the underwriters' job to raise price up to whatever enough buyers are ready to pay for it. This means there is strong demand for the shares... which is a bit surprising to me !

Completely agree here. People loose me when they were trying to rationalize what the stock market does. Most investing based on valuation left a LONG time ago. Name your examples: Tesla, Airbnb, Facebook. They have found more oil in the northern plains than they have in history.... Like EVER... and the price of oil (and many other related commodities and companies) fluctuates at the whim of investors pumping and dumping it using any excuse in the news to move.the market on it. Sure there are some companies valued based on their actual performance like Amazon, Procter and Gamble,.and many others. This is a roulette wheel and while putting money down, I'm not putting anything into it that I can't (I would be mad, but it wouldn't ruin me) walk away from.

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[Lisa & Bob]

Normal plant has a production capacity of 150,000 units splitted in 65,000 R1 and 85,000 commercial vans as per latest S-1

What happens to those who have pre-order the R1S?

 

[Lisa & Bob]

I had sent in a intent to purchase 100 shares. At $70|$74 I’m pulling out (well maybe 10 just say I was in the IPO). The Forbes article cooled my emotional projection. We’ll keep our order in for the R1S but expect it not in the drive for at least a year. I’m feeling the early investors (not just Amazon and Ford but institutional brokers) will benefit from the IPO. I’ll keep the rest of my planned investment from at least a month or perhaps the first of the year to see what the open market believes the valuation should be. Let me know if Berkshire Hathaway is making a showing at the gate.

 

[jjswan33]

https://www.cnbc.com/2021/11/08/cra...the-next-tesla-and-would-rather-own-ford.html

I think Cramer is talking to folks on this forum. He gives his blessing… lol

 

[Lisa & Bob]

I am reminded often that Rivian is a niche player and therefore does not warrant a $50 billion valuation.

Remember, Tesla was valued at less $2 billion for their IPO and had delivered over a 1000 vehicles.

The real value of Rivian even if it can produce its niche products is the low teens.

Tesla had first mover status even as it was going through proof of concept. Now the whole world is moving to EVs and it will be about economies of scale. Unless Rivian produces a low cost crossover that can compete with the major auto makers EVs, Rivian will stay a niche player and most likely be purchased once their valuation approaches its real value at ~$15 billion.

Don't get me wrong, for me the R1S is the car to own but that doesn't I want to lose money on an IPO or bottom pick when the stock falters.

I share your comment completely. Great vehicle but not great IPO

 

[wizard467]

What happens to those who have pre-order the R1S?

The R1S and R1T share the 65,000 line. The Vans are on the other line.

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