5 Best Young Stocks to Buy and Hold For Next 20 Years

2. Rivian Automotive, Inc. (NASDAQ:RIVN)

Number of Hedge Fund Holders: 35     

Rivian Automotive, Inc. (NASDAQ:RIVN) designs, develops, manufactures, and sells electric vehicles and accessories. It is one of the elite IPO stocks to invest in. On October 3, Rivian Automotive said it had produced 7,363 vehicles at its manufacturing facility in Normal, Illinois by the end of September. Rivian Automotive also shared its full year production target of 25,000 vehicles. 

On September 28, RBC Capital analyst Joseph Spak maintained an Outperform rating on Rivian Automotive (NASDAQ:RIVN) stock and lowered the price target to $62 from $75, noting that the company’s near-term encouraging activity provides more confidence in the company’s Q4 ramp.

At the end of the second quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $1.6 billion in Rivian Automotive, Inc. (NASDAQ:RIVN), compared to 29 in the previous quarter worth $3.9 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Rivian Automotive, Inc. (NASDAQ:RIVN) was one of them. Here is what the fund said:

“Rivian Automotive, Inc. (NASDAQ:RIVN) designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian declined 48.2% in the second quarter as investors continued rotating out of long-duration assets and have become increasingly concerned about capital intensity and cash burn.

At the same time, Rivian continues to be impacted by supply chain issues which are causing delays in its production ramp. Rivian is addressing those 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). Rivian recently reported stronger-than-expected second quarter production numbers while reiterating its annual guidance of producing 25,000 units.

As semiconductor shortages ease, we believe that the company will be able to rapidly ramp its production. We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and its strong balance sheet. As of the end of the first quarter, Rivian had $17 billion of cash and cash equivalents, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”