Rivian Automotive (RIVN.US) stock jumped over 12% on Monday after George Soros' fund company disclosed its $ 2 billion investment. One of the main shareholders is Amazon, which, mainly thanks to the excellent IPO of Rivian, presented impressive financial results for the fourth quarter.
Why did Rivian's stock fall in recent months?
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appRivian stocks have been losing recently mainly due to potential production delays and investor fears over military intervention in Ukraine. The company is still relatively young and intends to operate in a narrow part of the market, which naturally affects the volatility of its share prices. Rivian faces form of Tesla (TSLA.US) or global concerns such as Toyota or the Volkswagen-Audi group. These companies also plan to increase the production of electric cars in the coming years.
Who is George Soros?
George Soros is a philanthropist and billionaire known mainly for the speculative attack on the British pound in 1990, which forced the Bank of England to raise rates, and eventually leave the ERM 'Exchange Rate Mechanism' zone.
Soros in the years 1969 - 1994 achieved a record annual average investment rate of 35%. He is now also known for his political commitment. Soros does not own a factory or any of the conventional businesses. He accumulated his fortune solely by carrying out financial operations. No wonder that this time the market also reacted euphorically when it heard about the billionaire's investment in Rivian.
Why did the stock price surge today?
Soros Fund Management bought Rivian shares worth nearly $ 2 billion. According to Reuters, by the end of December 2021, Soros owned almost 20 million shares. However, neither the purchase price nor the time of the transaction are known. Importantly, it is not yet clear whether George Soros still owns these shares, as the report is from December 2021.
Moreover, Russia declared today it will continue negotiations wit the West, which improved the market sentiment. The fact that Amazon and the Soros fund invested in Rivian meant that many long-term investors perceive it as a sign of the company's great potential. Amazon has signed a contract with Rivian to supply 100,000 electric vehicles, of which the first 10,000 are scheduled for delivery later this year.
Rivian Automotive (RIVN.US) stock rose sharply today and managed to break above the upper limit of the triangle formation. Nevertheless buyers still need to push the price above 23.6% Fibonacci retracement of the last downward wave. Until price sits below this level, another downward move towards support at $50.25 may be launched. Source: xStation5
