(Rivian is a drag) Amazon Nightmare Is Reminiscent of the Dotcom Collapse

[Count Orlok]

Moreover, the big investment in the manufacturer of electric vehicles Rivian (RIVN) is turning into a nightmare. Rivian’s stock is down 81% this year. Amazon held a 17.34% stake in Rivian as of September 29.

Rivian's stock market crash likely translates into asset write-downs in Amazon’s financials.

Amazon Nightmare Is Reminiscent of the Dotcom Collapse

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[Donald Stanfield]

It still amazes me how people write articles surprised how the stock market is down when it was done on purpose to curb inflation by the fed raising interest rates. We all knew this was going to happen, yet articles like this still exist.

 

[Count Orlok]

so absent the fed moves amzn and rivian would be up? I doubt it.

 

[VSG]

Amazon invested $1 billion in Rivian and now owns 17.34% of a company worth $17.55 billion (as of today with the stock at $19). By my calculation the Amazon stake is now worth "only" $3 billion dollars. That stake in Rivian is worth three times now what they paid, but even then it's only 1/3 of 1% of Amazon's market cap. What a nightmare.

The only way this resembles the dotcom collapse is all the fearmongering day traders and speculators who don't know what they're doing but are trying to strike it rich. They got into the market when it was going up up and counted on that always being the case (and bought bitcoin while it soared, while patting themselves on the back for being so smart), but now that the market is struggling they're panicking because they're afraid of losing all that money they "earned".

 

[Redline]

so absent the fed moves amzn and rivian would be up? I doubt it.

Very possible.

 

[Donald Stanfield]

so absent the fed moves amzn and rivian would be up? I doubt it.

No the entire economy would collapse absent the fed. We were heading for runaway inflation before those interest rate hikes.

 

[Count Orlok]

you misspelled record corporate profits LOL

 

[Donald Stanfield]

you misspelled record corporate profits LOL

I have no illusions about the system being rigged. Both the system can be rigged and runaway inflation could have been averted by federal reserve action. The free money from the covid crap coupled with the shutdowns created a potentially bad situation that the interest rate hikes probably prevented. The real foolproof indicator of inflation is constrained supply and too much general buying power.

 

[bummin]

I doubt Amazon is unhappy about only tripling their money at this moment. The corporate incentives for adopting EV’s or other so called “clean vehicles” is huge. It ensured they were at the head of the line, Amazon will qualify for credits to build out EV charging for their vehicles, and when stock goes up, Amazon starts deliveries on Mars.
All that air normally uses by ICE vehicles, can be sold at a premium with just in time delivery

 

[manitou202]

For a company the size of Amazon ($500B in revenue) a write down of $10B does not cause the stock to drop 50%.

 

[COdogman]

These stock value articles are getting more hysterical by the day. Amazon will be fine.

These writers need to get laid or take sedatives or meditate. Something.

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