Business & Investment

One EV stock that can be richer than Rivian

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Rivian Automotive (NASDAQ: RIVN) Is one of a number of initial public offerings (IPOs) targeting the electric vehicle (EV) market this year. In addition, analysts say it’s just the beginning. The significant increase in EV inventories is due to increased demand for new cars. And investors want to take advantage of it.

But there is a problem here. Rivian is not as proven as the other EV stocks that Motley Fool investors think. examination.. It’s been doing well since the IPO, but it’s been on the market less than a month ago. After rising 129%, share fell 36%. It’s still up 46% since the IPO, but Rivian may not be where you want to put your cash right now.

Why EV stock?

First, let’s see why Motley Fool investors are generally still interested in buying EV stock. Companies like Rivian continue to market with increasing demand for EVs. But it doesn’t have to be an automaker.In fact, EV stock is considered everything Generally related to EV.

But now there is a big problem. Due to the shortage of semiconductors, many EV inventories are decreasing all over the world. This includes Canadian companies. Now there are situations that can be overrated by many companies.

Well, almost every company.

Improving performance in challenges

While other companies like Rivian may face challenges in the coming months, Motley Fool investors need to find a company that offers the solution.That’s what you get POET Technologies (TSXV: PTK)..

POET Stock is an EV stock that designs and develops semiconductors via the Optical Interposer platform. According to the company, the platform reduces costs and “eliminates” labor-intensive assembly. Headquartered in Toronto, it operates in Pennsylvania, Shenzhen, China and Singapore.

In its latest earnings report, POET improved its cash position by 97% and ended the quarter with $ 20.3 million in cash and cash equivalents. The $ 288 million company reported a net loss of $ 3.5 million, or $ 0.01 per share. This is due to the increase in R & D that the company said varies from quarter to quarter.

EV stocks continued their growth strategy, with $ 400,000 coming in from the joint quarter. And management believes that’s just the beginning of the company. Analysts see Canada as a major opportunity for semiconductor creators like POET, and the stock has the potential to grow significantly in the near future.

“Supply chain challenges facing the industry are undoubtedly impacting the delivery schedule of initial samples to customers,” reported Dr. Suresh Venkatesan, Chairman and CEO. “Nevertheless, we are currently producing the expected amount of samples and shipping them to our customers … the world’s leading lasers as part of our decisive efforts to meet and exceed industry expectations. We are working with one of our suppliers. It is an advanced product for the New Year. “

Still underestimated

On the surface, Motley Fool investors may not see the company’s loss and small size as a major advantage. But compared to Rivian, this is a great company you would want in your portfolio. While it was still burning cash, it reduced it to a level appropriate for a business of that size. Therefore, you can continue to grow without worrying about very little debt.

The share of EV shares rose 64% last year and could rise shortly due to plans to list on Nasdaq. This can result in a stock price of $ 1 or more per share. Therefore, while EV stocks remain undervalued, it is now a great opportunity to buy.

POET is a great option for Motley Fool investors looking for opportunities and solutions to semiconductor challenges. You can join the action and buy a company that has the potential to become a multi-bagger in the near future with increased use of EVs.

One EV stock that can be richer than Rivian One EV stock that can be richer than Rivian

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