Gary Black Says Apple Should Buy Rivian To Catch Up With Chinese Smartphone Rivals Making Cars
Portfolio Pulse from Anan Ashraf
Gary Black, Managing Partner at Future Fund, suggests that Apple Inc (AAPL) should consider acquiring Rivian Automotive Inc (RIVN) to compete with Chinese smartphone companies entering the EV market. Black notes that Rivian, with a $17.5B enterprise value, may not be open to a sale, especially with Amazon.com Inc (AMZN) holding a 17% stake. Rivian's Q3 performance was strong, with vehicle deliveries close to Tesla's and better-than-expected financial results. Black is bullish on Rivian's future profitability.
December 30, 2023 | 4:39 am
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NEUTRAL IMPACT
Apple Inc is suggested by Gary Black to acquire Rivian to enhance its position in the EV market and compete with Chinese smartphone makers entering the space.
While the suggestion by Gary Black could be seen as a strategic move for Apple, there is no indication that Apple is considering this acquisition. The impact is neutral as it is speculative and not based on any official statement or action by Apple.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Amazon.com Inc is mentioned as a significant stakeholder in Rivian, holding a 17% stake, which could be a factor in any potential acquisition talks.
Amazon's stake in Rivian is a relevant detail in the context of acquisition discussions. However, without any active negotiations or interest from Apple, the short-term impact on Amazon's stock is neutral.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Rivian Automotive is mentioned as a potential acquisition target for Apple, with a noted enterprise value of $17.5B and strong Q3 performance, but with the caveat that Amazon holds a significant stake.
The acquisition suggestion by Gary Black could generate investor interest in Rivian, but the presence of Amazon's 17% stake and no actual move by Apple makes the impact neutral in the short term.
CONFIDENCE 60
IMPORTANCE 70
RELEVANCE 80