Rivian Automotive, Inc. (Nasdaq: RIVN) stock is experiencing a significant downturn in today’s trading session, marked by a sharp price drop and heavy trading volume. As of 11:00 AM EDT, the electric vehicle maker’s shares were trading at 0.51 or 3.86% for the day.
The accompanying chart for the day reveals a dramatic shift in sentiment. After trading relatively stable in the pre-market hours, the stock plummeted shortly after the market opened at 9:30 AM EDT. The price fell from an opening of $12.88 to the day’s low of $12.53 in a short period. This move was supported by a substantial spike in volume, indicating strong selling pressure from investors.
Currently, the stock is trading near the bottom of its daily range, suggesting that bears are in control of the session’s momentum. The volume so far is over 11.4 million shares, a significant figure that points to a day of heightened activity and investor interest, albeit in a negative direction.
Should You Buy or Sell RIVN Stock Today?
Based on the technical picture, the stock is showing clear bearish momentum for the day.
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For Short-Term Traders: The strong downward push on high volume suggests that caution is warranted. The stock is struggling to find support, and the path of least resistance currently appears to be downward or sideways at these lower levels for the remainder of the trading day.
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For Long-Term Investors: Today’s drop could be viewed from a different perspective. For those who believe in Rivian’s long-term growth story, a significant price decline can present a potential “buy the dip” opportunity. It’s worth noting that while the stock is under pressure today, the 1-year analyst target estimate is listed at $14.88, which suggests potential upside from the current price. However, the stock’s high Beta of 1.86 indicates it is significantly more volatile than the overall market.
Our Opinion on the Stock
Rivian (RIVN) is currently in a precarious position in the short term. The sharp sell-off today indicates negative market sentiment, and the stock will likely need a positive catalyst to reverse its current trajectory.
For the rest of today, investors should watch if the stock can hold support at its daily low of around $12.53. A break below this level could lead to further declines.
From a broader perspective, RIVN remains a classic high-risk, high-reward growth stock. The company is not yet profitable (as shown by the negative EPS of -3.69), and it operates in a highly competitive EV market. The decision to invest hinges on an individual’s risk tolerance and their long-term conviction in Rivian’s ability to scale production and capture market share.
