Amazon discloses stake in Rivian as electric truck race takes a new turn

  • Amazon (AMZN) discloses that it holds a stake in Rivian Automotive (RIVN). The Seattle e-commerce giant previously said that it plans to buy 100K electric vans from the automaker for its delivery fleet.
  • The Rivian investment is lumped in with other Amazon equity investments for which the value disclosed is not accounted for under the equity-method and without readily determinable fair values.
  • Per AMZN's filing: "As of December 31, 2020 and September 30, 2021, equity investments not accounted for under the equity-method and without readily determinable fair values, including preferred stock of Rivian Automotive, Inc. representing an approximately 20% ownership interest, had a carrying value of $2.7 billion and $3.8 billion, and are recorded within Other assets on our consolidated balance sheets."
  • The company's electric pickup truck beat models from Tesla (NASDAQ:TSLA), Ford (NYSE:F) and General Motors (NYSE:GM) to the market earlier this summer. An SUV model and Amazon delivery vans are also in the works. Rivian (RIVN) is being valued at close to $80B based off its last valuation round and its IPO will be one of the largest ever in the auto sector even if that valuation does not hold.
  • Rivian is also still on the radar of Ford (F), which says it is exploring ways for potential collaboration, and is a near cousin with Jeff Bezos' Blue Origin (BORGN), which showcased Rivian vehicles at a launch recently.

    Over the current book year the company from Seattle's total revenue could be around 470.4 billion USD (consensus estimates). This is hugely more than 2021's revenue of 386.06 billion USD.

    Historical revenues and results Amazon plus estimates 2021


    The analysts expect for 2021 a net profit of 21.11 billion USD. According to most of the analysts the company will have a profit per share for this book year of 40.94 USD. With this the price/earnings-ratio is an extreme 86.49.

    Analysts don't expect the company to pay a dividend. The average dividend yield of the general retailers is a low 1.49 percent.

    Based on the current number of outstanding shares Amazon 's market capitalization is 1763.27 billion USD. 13

    On Tuesday the stock closed at 3540.7 USD.

    Historical stock prices Amazon

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