Amazon-Backed Rivian Prices IPO
Plus, Coinbase's bad earnings.
Today is Wednesday, November 10, 2021.
Amazon-Backed Rivian Prices IPO
Rivian, an electric vehicle company backed by Amazon (Nasdaq: AMZN) and Ford (NYSE: F), is set to make its highly anticipated initial public offering today.
Details: Rivian will price its IPO at $78 a share, which would value the company at over $77 billion, according to The Wall Street Journal. The company previously expected to price the IPO between $57 to $62. It will go public on Nasdaq under the ticker RIVN.
The Good: The hype surrounding the company could be justified. The company is backed by good investors. Rivian beat out Tesla (Nasdaq: TSLA) and General Motors (NYSE: GM) to bring a fully electric pickup to the market. The company has big orders for vehicles over the next few years.
The Bad: But there are a few red flags. At $77 billion, Rivian would be valued higher than most automakers. The company is expected to lose over $1 billion a quarter. And Rivian has no revenue yet.
Final Thoughts: Some investors are buying into the hype and others are skeptical about the valuation. The market is good for electric vehicle companies. Will it live up to the hype? And how will rival electric vehicle stocks respond?
Notable Earnings Today: Walt Disney (NYSE: DIS), SoFi (Nasdaq: Sofi), Fiverr (NYSE FRR), Wendy’s (Nasdaq: WEN), Affirm (Nasdaq: AFRM), Wish (Nasdaq; WISH), Beyond Meat (Nasdaq: BYND), Opendoor (Nasdaq: OPEN), Monday.com (Nasdaq: MNDY), Adidas (OTCMKTS: ADDYY), Bumble (Nasdaq: BMBL), GoodRx Holdings (Nasdaq: GDRX), Red Robin Gourmet Burgers (Nasdaq: RRGB), Tencent Holdings (OTCMKTS: TCEHY), ZipRecruiter (NYSE: ZIP).
Notable IPOs Today: CI&T Inc (NYSE: CINT), Expensify, Inc. (Nasdaq: EXFY), FlexEnergy Green Solutions, Inc. Common Stock (Nasdaq: FLXE), Rivian Automotive, Inc. (Nasdaq: RIVN), Chain Bridge I Units (Nasdaq: CBRGU), Bluejay Diagnostics, Inc. Common Stock (Nasdaq: BJDX), Blackboxstocks Inc. Common Stock (Nasdaq: BLBX).
Notable Equity Crowdfunding Campaigns Ending Today: Waverly Labs (StartEngine), Carlocity (Wefunder), Chaia (SMBX), Metaiye Knights (StartEngine), Called Higher Studios (StartEngine), Prince Subs (Honeycomb).
Notable Economic Events Today: Jobless claims (8:30 a.m. ET), Consumer price index (8:30 a.m. ET), Core CPI (8:30 a.m. ET), Crude oil inventories (10:30 a.m. ET), Federal budget balance (2:00 p.m. ET).
Coinbase Suffers Due to “Softer” Market Conditions
Shares of Coinbase (Nasdaq: COIN) fell 13.24% in after-hours trading on Tuesday after the cryptocurrency exchange posted negative earnings.
Numbers: Total revenue reached $1.3 billion, less than the expected estimate of $1.5 billion. Its earnings per share of $1.62 did not impress.
The Bad: Coinbase said that the company entered the quarter with “softer crypto market conditions driven by low volatility and declining crypto asset prices.” Trading volumes dropped 36%.
The Good: It wasn’t all bad for the company. Verified users on the platform grew to 73 million. Subscription and services revenue increased 41%.
Final Thoughts: There’s a lot of optimism for Coinbase, especially as it moves into the NFT market. However, how can the company compete against other crypto platforms, such as Robinhood (Nasdaq: HOOD), which has commission-free trading?
Ethereum Alternatives to Watch
While there are many things that investors like about Ethereum, here are three alternatives that you might want to keep an eye on.
Got Sol: Solana, another public blockchain platform that is viewed as a rival to Ethereum, is also having its moment under the sun. It recently reached an all-time high.
In the Cards: Cardano was founded by a co-founder of Ethereum and is another blockchain. The price of Cardano peaked in September.
Put a Dot on It: Similar to Cardano, Polkadot was founded by an Ethereum co-founder. It also recently reached an all-time high in price.
Final Thoughts: Investors have tons of crypto options, including Ethereum and these alternatives.
Trends to Watch
Not Looking Up: Upstart stock dives 22% after Q4 adjusted EBITDA seen falling from Q3 (Seeking Alpha)
Raise the Roof: Now Real Estate Investment Platform Roofstock Offers Fractional Shares of Managed Rental Properties, Explores Tokenization (Crowdfund Insider)
Leaving: Wynn Resorts CEO Matt Maddox to step down in January (Fox Business)
Dip Your Toes: Apple CEO Tim Cook Reveals He Owns Crypto but Has No Plans to Buy It for the Company (CoinDesk)
Splitting: GE to break up into 3 companies focusing on aviation, health care and energy (CNBC)
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