Why Rivian Automotive Inc. (RIVN) Went Down On Monday?

We recently published a list of 10 Stocks Drop The Most Amid Investor Caution. In this article, we are going to take a look at where Rivian Automotive Inc. (NASDAQ:RIVN) stands against other stocks that drop the most amid investor caution.

Wall Street kicked off the first trading day of the week on a sour note, with all the major indices closing mixed as investors chose to stay on the sidelines while waiting for further updates on key economic news, including trade tariffs and government spending, among others.

The Dow Jones was the sole gainer among all major indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.

Meanwhile, we have compiled a list of 10 companies that mirrored the broader market downturn and detailed the reasons behind their drop.

To come up with Monday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

Note that the companies we covered in-depth last Friday have been excluded from the list.

A state-of-the-art electric vehicle charging at a station at a suburban mall.

Rivian Automotive Inc. (NASDAQ:RIVN)

Rivian Automotive fell for a fourth straight day on Monday, losing 7.79 percent to close at $11.96 apiece as investors sold off positions following Bank of America’s rating downgrade.

In a report, the bank said it downgraded RIVN to “underperform” from “neutral” previously and lowered its price target to $10 from $13.

According to the bank, risks are piling up for the company despite it being one of the most viable startup electric vehicle manufacturers.

During the fourth quarter of 2024, RIVN narrowed its net loss by 51 percent to $744 million from $1.521 billion in the same period a year earlier while revenues grew by 31.86 percent to $1.7 billion from $1.3 billion.

For the full year, net loss shrunk by 12.6 percent to $4.747 billion from $5.432 billion in 2023, while revenues increased by 12 percent to $4.97 billion from $4.4 billion year-on-year.

For this year, RIVN expects adjusted EBITDA loss to settle between $1.7 billion to $1.9 billion.

Overall, RIVN ranks 9th on our list of stocks that drop the most amid investor caution. While we acknowledge the potential of RIVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RIVN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.