90% of Amazon's Portfolio Is Invested in This EV Stock (Hint: It's Not Tesla)
Can Rivian bounce back from its terrible performance this year?
90% of Amazon's Portfolio Is Invested in This EV Stock (Hint: It's Not Tesla)
Overview
Amazon (NASDAQ: AMZN) has an impeccable track record. The e-commerce specialist leads several industries, generates consistent revenue, earnings, and cash flow, and has delivered market-crushing returns over the long run. But can the company's stock portfolio perform nearly as well? If it does, it may be because of its largest current holding, Rivian (NASDAQ: RIVN), an electric vehicle (EV) maker. A little over 90% of Amazon's public equity portfolio is in this single stock. Should investors also be bullish on Rivian?
Image source: The Motley Fool.
In February 2019, Rivian announced a $700 million investment round led by Amazon. That was more than two and a half years before the EV company went public. What was Amazon's reason behind this move? The e-commerce leader has a massive logistics network, including a fleet of vehicles and delivery drivers. By using EVs for transport and deliveries, the company might reduce fuel (and other) expenses.
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Originally published at www.fool.com.
