The R1T, the new all-electric pickup truck by Rivian.
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Rivian Automotive stock has soared since its initial public offering, and it’s hard to call it anything but a smashing success. That looks to be changing Wednesday.
Rivian (ticker: RIVN) stock had risen for five consecutive days following the pricing of its initial public offering of stock. That’s unusual. Dow Jones Market Data found just seven other instances of billion dollar U.S. IPOs that posted similar winning streaks over the past five years. There are more than 200 IPOs in that data set.
Rivian looks unique among its IPO winning-streak peers. While there are seven others, Rivian’s is the largest IPO of the bunch—by far.
The other seven in chronological order are the 2018 IPOs of AXA Equitable, now just Equitable (EQH) and GreenSky (GSKY), the 2019 IPOs of Pinterest (PINS) and Avantor (AVTR), the 2020 IPOs of ZoomInfo Technologies (ZI) and Pershing Square Tontine Holdings (PSTH) as well as the 2021 IPO of Shoals Technologies (SHLS).
All those seven rose for at least five consecutive days following the IPO. The average gain during the winning streaks was 54%.
A couple have had longer winning streaks. Pinterest rose for seven consecutive trading sessions. Pershing rose for six consecutive trading sessions. Pinterest rose 80% during its winning streak. Pershing stock rose about 7%.
Rivian’s five-day streak beats those two gains, though. The gain in Rivian stock, so far, is 121%.
ZoomInfo’s gain beats Rivian’s five-day gain. That stock rose 140% over five days. But ZoomInfo’s market capitalization hit roughly $20 billion after its run. Rivian’s market cap is at about $170 billion.
What’s more, ZoomInfo raised about $1.1 billion. Rivian raised almost $14 billion. The other seven, including ZoomInfo, raised $2.4 billion, on average, in their IPO processes.
Looking ahead, four of the seven IPOs, besides Rivian, are up from their peak winning streak prices. The average gain from there is about 30%. Avantor stock has performed the best, gaining another 127%. GreenSky has performed the worst, down about 54% from its post-IPO winning-streak peak.
Rivian has a lot of work to do if it’s going to try to make it six straight. Shares were down 18% at 10:25 a.m. Wednesday, while the S&P 500 and Dow Jones Industrial Average were down 0.3% and 0.4%, respectively.
No matter how investors slice the data, the Rivian IPO is amazing. The Rivian IPO also means electric vehicles are hot right now on Wall Street.
The total market capitalization of EV makers is about $1.6 trillion. Tesla (TSLA) is the largest EV firm with a market cap of about $1 trillion. Rivian is second. The total market cap of traditional auto makers is about $1.5 trillion.
There are about 14 million battery electric cars on global roads. That’s roughly 1% of the 1.4 billion cars on global roads.
The number of EVs compared with EV valuation makes value investors, frankly, a little crazy. The valuation per car is enormous. That stat doesn’t vex growth investors though. There is a long way for EVs to go to penetrate the fleet of global vehicles.
Write to Al Root at [email protected]
