5 Nasdaq Sleeper Stocks to Buy Before Wall Street Wakes Up

4. Rivian Automotive Inc. (NASDAQ:RIVN)

Number of Hedge Fund Holders: 35

Rivian Automotive Inc. (NASDAQ:RIVN) is an automobile manufacturing company selling electric vehicles. The company is based in Irvine, California.

Vijay Rakesh, an analyst at Mizuho, reiterated a Buy rating and a $65 price target on Rivian Automotive Inc. (NASDAQ:RIVN) shares on October 11.

Rivian Automotive Inc. (NASDAQ:RIVN) reported revenues of $536 million in the third quarter. It is also improving its loss margins. For instance, in the third quarter, its non-GAAP loss narrowed by $34 million.  The company is also benefitting from high demand for its products, as seen in the second quarter when it reported about 98,000 net pre-orders. These orders are in addition to the 100,000 initial orders of electric vans ordered by Amazon.

Rivian Automotive Inc. (NASDAQ:RIVN) was found among the 13F holdings of 35 funds in the second quarter and 29 funds in the previous quarter. Their total stake values were $1.6 billion and $3.9 billion, respectively.

Baron Funds, an asset management company, mentioned Rivian Automotive Inc. (NASDAQ:RIVN) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Rivian Automotive, Inc. (NASDAQ:RIVN) designs, manufactures, and sells consumer and commercial electric vehicles (EVs). Shares of Rivian were up 28% in the third quarter driven by second quarter production that beat expectations, a new partnership with Mercedes Benz, and the positive potential impact of the recently announced Inflation Reduction Act on accelerating broader EV adoption. While Rivian continues to be impacted by supply-chain issues that are causing delays in its production ramp, it is addressing the challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch R2 in 2025). The company also recently reported stronger than-expected third quarter production results while reiterating its annual guidance of producing 25,000 units. As semiconductor shortages ease, we believe the company will be able to rapidly ramp its production. While we retain conviction in the shares given the company’s vision, product positioning, relationship with Amazon.com, and strong balance sheet, we have reduced the size of our position.”