1) Austin Smith posted May 2, 2024 11:33 PM
Class,
Rivian is a startup company that specializes in electric vehicles (EVs) and designs and produces electric pickup trucks and executive SUVs. The initial public offering (IPO) of the firm was one of the largest of the year, and it took place on November 10, 2021.
IPO Details:
IPO Price: $78 per share
Shares Offered: 153 million shares
Raised: $11.9 billion, making it the sixth-largest IPO ever in the U.S.
Valuation at IPO: Approximately $66.5 billion
The IPO of Rivian generated a lot of excitement and investors showed great enthusiasm, as evidenced by the significant increase in share prices on the first day of trading. This surge in value placed the company’s worth at an impressive $100 billion. This was a highly notable market debut that has garnered significant attention in recent years. Since then, the stock’s performance has been quite unpredictable, mirroring the difficulties and uncertainties the company has encountered in expanding production and meeting ambitious delivery goals. In May 2023, the stock price of Rivian is currently around $15.
Rivian has been facing challenges in scaling up production and meeting delivery goals, which has resulted in a notable drop in its stock price after the company revised its 2023 production forecast.
After generating a lot of excitement and achieving a successful IPO, Rivian’s performance afterwards has shed light on the difficulties that EV startups encounter in a fiercely competitive and capital-intensive market. This article offers a glimpse into the various factors that have been impacting Rivian’s stock price and how the market has been receiving it since its IPO (Reuters, 2023).
Reference
News Article: “Rivian Stock Continues Downward Spiral After Production Cut” (Reuters, March 7, 2023)
https://www.reuters.com/markets/us/rivian-stock-continues-downward-spiral-after-production-cut-2023-03-07/
2) Deziah Weissenberger posted May 2, 2024 11:45 PM
Classmates,
Instacart is a top-notch online grocery delivery and pick-up service company that operates in both the United States and Canada. The company made its debut on the stock market on May 26, 2023, generating a lot of excitement as one of the most highly anticipated initial public offerings of the year. The IPO price for Instacart is set at $32 per share. Investors had varying reactions to Instacart’s IPO.
The company’s stock had a great start on its first day of trading! It opened at $35 per share, which was a significant 9.4% increase from the IPO price. Unfortunately, the initial excitement quickly faded when the stock ended the day at $30.65, a 4.2% decrease from the IPO price (Kang & Driebusch, 2023).
Instacart’s stock has been experiencing significant fluctuations in recent trading days, which can be attributed to concerns surrounding the company’s ability to sustain its growth and profitability in a fiercely competitive market.
I just wanted to give you a quick update on Instacart’s stock. As of June 2, 2023, it’s currently trading at around $28 per share, which is about 12.5% lower than its IPO price. I just thought you might find that interesting.
Instacart’s IPO garnered a lot of attention and managed to raise a considerable amount of capital. However, the company’s stock performance indicates that investors are being cautious when it comes to high-growth companies in the current market. They are placing a greater emphasis on profitability and sustainable business models.
Reference
Kang, J. and Driebusch, C. (2023, September 13). Instacart Shares Climb 12% in Stock Market Debut. https://www.wsj.com/finance/stocks/instacart-stock-cart-trading-nasdaq-2e0c060e
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