Rivian Selloff 'Way Overdone,' Says Fund Manager After Stock's 23% Wreck: 'Being Penalized For ...'
Portfolio Pulse from Shanthi Rexaline
Rivian Automotive's shares fell nearly 23% after the company announced a debt offering. Future Fund Managing Partner Gary Black believes the selloff is overdone and that the conversion of debt into equity may not dilute equity capital significantly. Despite concerns raised by others, Black notes that Rivian's Q3 preliminary revenue estimate and cash guidance are in line with or above expectations.
October 06, 2023 | 5:09 am
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Rivian's stock fell nearly 23% following a debt offering announcement. Despite the drop, some analysts believe the selloff is overdone and expect minimal equity dilution.
Rivian's stock price fell significantly after the company announced a debt offering, which is often viewed negatively by investors as it can lead to equity dilution. However, some analysts believe the selloff is overdone and that the impact on equity will be minimal. This contrasting view could lead to volatility in the stock's price.
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