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EV Demand Slumps: Rivian Misses Targets
3 Jan
Summary
- Rivian deliveries fell 18% year-over-year in 2025.
- Analyst sets a lower price objective for Amazon shares.
- Shift towards lower-beta assets like government bonds advised.
Rivian Automotive Inc. concluded 2025 with 42,247 vehicle deliveries, an 18% year-over-year decline and a shortfall compared to market forecasts. This trend indicates persistent challenges in the electric vehicle sector, especially for premium-priced vehicles.
An analyst has expressed concerns about Amazon's valuation, suggesting its current price-to-earnings multiple may be unsustainably high given the costs associated with AI investments. Consequently, a 12-month price objective of $255 per share has been set, which is below the average analyst estimate.
This analyst also recommends a portfolio reallocation towards less volatile assets such as government bonds, anticipating a potential decline in equity prices and a tighter market environment in the long term. Investors await Amazon's upcoming quarterly results for insights into margins and AI monetization strategies.
