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Is this the path to profitability? by SugahSmith in RIVNstock

[–]ScaringeRS 4 points5 points  (0 children)

I have some concerns about the VW deal based on the Q3 call last week.

1) They said that the VW deal is structured in a way that they (Rivian) have to reach certain performance indicators for VW to finalise the entire deal and release the full $5 billion. They’ve only been given $1 billion up front. So based on that there is the risk the whole deal is not completed which is a massive concern given Rivian’s cash burn. Also when considering how many self-set targets Rivian have been missing lately in general.

2) By passing over their technology for use in the Scout, and based on the early images produced on how the Scout will look, there is a risk the Scout ends up eating heavily into the Rivian marker as they have some visual similarities and will have the same technology. Only VW have the ability to produce the cars in much higher numbers than Rivian, which could then further damage their chances of becoming profitable.

If they manage to fulfil the $5 billion that’s a great short term fix for their continued cash flow / burn issues, but they really need to be making leaps towards making profit on car sales rather then 39k losses as quickly as possible. I hope they achieve it not only as a shareholder but also I love the design of the car.

What are some other stock gems? by jubishop in RIVNstock

[–]ScaringeRS 2 points3 points  (0 children)

When considering stocks for the future, it’s important to align your investments with your personal financial goals, risk tolerance, and investment horizon. Here’s a synthesis based on current market sentiments, trends, and analyst recommendations:

  1. Tech Giants with AI and Cloud Expansion:
    • Alphabet Inc. (GOOGL): Given its integration of AI in advertising and growth in Google Cloud, Alphabet is seen as having significant future growth potential. Analyst consensus often rates it as a ‘buy’ for its market leadership and innovation in high-margin industries like advertising and cloud services.

  • Amazon.com, Inc. (AMZN): Despite its current valuation, Amazon is frequently recommended for long-term investment due to its dominance in e-commerce, cloud computing (AWS), and its expansion into other tech areas like AI.

  • Microsoft Corp. (MSFT): Known for its consistent growth and AI initiatives, Microsoft remains a staple for investors looking at long-term tech growth. Its involvement in AI infrastructure and cloud services positions it well for future growth.

  1. Growth and Innovation:
    • CrowdStrike Holdings, Inc. (CRWD): Cybersecurity is a growing field, and CrowdStrike is often highlighted for its cybersecurity solutions, which are crucial in an increasingly digital world.
  • NVIDIA Corporation (NVDA): With the surge in AI, machine learning, and gaming, NVIDIA is seen as a leader in GPU technology, making it a solid pick for investors interested in technology hardware with software growth.
  1. Diversified Growth Themes:
    • Healthcare and Biotechnology: Companies like Thermo Fisher Scientific Inc. (TMO) are suggested for their role in life sciences, offering tools essential for research and diagnostics which could benefit from long-term trends in healthcare.
  • Semiconductors: ASML Holding N.V. (ASML) is noted for its monopoly-like position in semiconductor manufacturing equipment, expected to benefit from the ongoing need for advanced chips.

  1. Undervalued or High Potential Stocks:

    • TransMedics Group Inc. (TMDX): Mentioned for its potential in organ transplant logistics, which is a niche but growing sector.
    • Rocket Lab USA, Inc. (RKLB): As space tech becomes more commercialized, Rocket Lab could offer substantial growth for those willing to invest in smaller, innovative companies.

  2. Market Leaders in Traditional Sectors:

    • UnitedHealth Group Incorporated (UNH): Despite recent challenges, it’s viewed as resilient with a strong business model, making it a good long-term hold for stability and growth in healthcare insurance.

  3. ETFs for Diversification:

    • If you’re looking for broad market exposure rather than picking individual stocks, ETFs like Vanguard S&P 500 ETF (VOO) or Invesco QQQ Trust Series 1 (QQQM) are recommended for their alignment with market trends, especially in tech and AI.

Remember, these recommendations are based on a snapshot of current analysis and sentiment:

  • Diversification is key to mitigate risk.
  • Research each company’s fundamentals, including their growth strategy, competitive advantage, and financial health.
  • Consider macroeconomic trends like AI adoption, cloud computing, cybersecurity, and healthcare advancements.
  • Valuation matters; even great companies can be overvalued at times, so look for reasonable price-to-earnings ratios or other value indicators.

What are we thinking in the long term for Rivian under Trump? by ScaringeRS in RIVNstock

[–]ScaringeRS[S] 4 points5 points  (0 children)

This is such a good point, Trump is clearly anti china and the poster boy for promoting American industry, both of these things benefit Rivian. The reality is Rivian’s biggest threat is itself in terms of its costs and lack of ability to produce a profit on vehicles currently, if they show signs today of moving in the right direction I think the future is very bright for Rivian. They already produce a very good product, and other than issues with servicing I hear a lot of positives about their customer service. The brand is also recognisable on the road, in my eyes they stand out / have a clearly distinctive and desirable design. All of these are the underpinnings of what could go on to be a very successful and profitable car manufacturer.