Rivian stock falls below IPO price, AMC stock soars after 'Spiderman' premiere
Yahoo Finance’s Ines Ferre discusses Rivian stock declining after lower production forecast in 2022, FedEx stock surging after strong earnings, and AMC stock soaring after the blockbuster premiere of ‘Spiderman’.
Video Transcript
KARINA MITCHELL: Checking all the fast-moving shifts in market dynamics is our Yahoo Finance's Ines Ferré with three big tickers we should be watching. And first off, Ines, Rivian taking a bath today after its earnings yesterday and a lower production forecast.
INES FERRE: Yeah. That's right, Karina. With Rivian shares down about 10%, this is lower than its opening trade on IPO day that it's trading at right now. And this is after the company's quarterly results, its first quarterly results really since becoming a public company. The company is saying that it will be falling short of its 2021 production target and that it will come a few hundred vehicles short of that goal to produce 1,200 vehicles by the end of 2021.
And this is because of supply chain constraints. And we know that other automakers have also talked about supply chain issues in the past. The company also announcing a construction of a new factory in Georgia, with electric vehicle production at that plant that's expected to start in 2024. And Wall Street. Just taking a look at what Wall Street analysts are saying about this, they are still bullish on this stock, on this company, overall. RBC has an outperform rating with a price target of $165 for Rivian, saying we remain positive on the story and think investors with patients should take advantage of a pullback.
Wedbush Securities has an outperform rating with a $130 price target, saying the Street will be disappointed to see a delivery shortfall. However, this is a supply issue and clearly not a demand issue for Rivian. So looking at what Wall Street analysts are rating the stock, you've got 10 buys, 4 holds, and 1 sell, with the average price target at $135. So some analysts saying, look, this is a pullback, a good opportunity to buy.
KARINA MITCHELL: Ines, I know you're also watching FedEx. Now, that stock has been underperforming the market and peer shipping giant UPS so far this year. But it's making up some ground today. What are the details?
INES FERRE: Yeah. FedEx reporting results on the top and the bottom line, beating expectations, with earnings per share coming in at $4.83 for its latest quarter, posting a record profit when it comes to its express packaged business. And really, the story here is that FedEx can raise prices. And it has been able to raise prices because it has that pricing power because people want their packages.
Another important note with FedEx and its latest quarter is that the company said that it saw recently 111,000 job applications in its latest week. Now, this is compared to 52,000 job applications for the week of May 8th. So having more job applicants, having more people working at the FedEx centers, has been able to allow the company to not have to reroute packages from short-staffed centers. So that is a cost reduction. Even though you have higher labor costs, it's able to staff its centers appropriately.
KARINA MITCHELL: And, Ines, AMC pulling another rabbit out of his hat this time thanks to the blockbuster premiere of the latest Spiderman flick, "No Way Home."
INES FERRE: Yeah. That's right. Let's take a look at AMC shares because this is an incredible story. AMC up 22% today, its biggest intraday gain since August. Now, we will note that over the last month, we've been noting the kind of slump in AMC shares and other meme stocks because of the omicron variant, because of a more hawkish Fed. Also, because of this less appetite for riskier assets. And AMC, though, today up 22%.
I will add that recently AMC has been announcing more launches of its NFTs. When it comes to Spiderman, it had it's a record for its premiere for Spiderman. 1.1 million people on its premiere. And that's its highest premiere ever for the month of December. So that's certainly sending the stock higher. And we'll also note, though, that the short interest on this stock is north of 18%.
So when you see any good news, any catalyst that sends this stock higher, investors pile into the stock. Shorts have to cover their position. And that also sends the stock price higher. Certainly, the apes out there very, very happy to see AMC shares up double digit percentages today.
KARINA MITCHELL: Ines, still a lot of love for that meme stock. All right. Ines Ferré, thank you so much for that report.
