Why Rivian Stock Is Cratering Premarket Today
Portfolio Pulse from Shanthi Rexaline
Rivian Automotive, Inc. (NASDAQ:RIVN) shares plunged in premarket trading following the announcement of a $1.5 billion green convertible senior notes offering due in 2030. Despite not having a dilutive impact on the stock, the debt offering could trigger liquidity concerns. The company also pre-announced Q3 revenue of $1.29 billion to $1.33 billion, compared to $551.57 million a year ago. Rivian's stock fell 8.61% to $21.65 in premarket trading.
October 05, 2023 | 9:54 am
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Rivian's stock price fell following the announcement of a $1.5 billion debt offering, which could trigger liquidity concerns. The company's pre-announced Q3 revenue is in line with estimates, but there's a risk of underperformance.
The announcement of a large debt offering can often lead to concerns about a company's liquidity, which can negatively impact the stock price. Additionally, while Rivian's pre-announced Q3 revenue is in line with estimates, if it comes in at the low end, it could be seen as underperforming, which could further pressure the stock.
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