Rivian Automotive (RIVN)
Electric vehicle stocks are some of the most volatile names in the market. Take Tesla: its shares are up 880% over the past five years, but down 47% in 2022.
And smaller EV names like Rivian Automotive can experience even wilder swings.
Rivian went public in November 2021 at an IPO price of $78. On the first day of trading, shares closed at $100.73 and reached a high of $179.47 later that month. But parabolic runs don’t last forever. At the time of this writing, Rivian shares trade at around $27.60 apiece, down 84% from those November highs.
Soros sees an opportunity in the beaten-down shares. He backed up the truck on Rivian in Q1, buying call options on 6.05 million shares during the quarter. Considering that Soros already had 19.84 million shares of the company that he bought in Q4, Rivian is by far the largest holding of Soros Fund Management.
Compared to other automakers, Rivian is still very much a growth play. As of May 2022, Rivian has produced around 5,000 EVs since the start of production.
Soros isn’t the only one who sees long-term potential in Rivian.
On May 17, Morgan Stanley analyst Adam Jonas reiterated an overweight rating on Rivian and set a price target of $60 — more than 100% above where the stock sits today.
More: High Yield Dividend Stocks that Beat Inflation
Salesforce is a cloud-based software giant. More than 150,000 companies use its customer relationship management platform to scale their business.
In Q1, Soros’ fund bought 106,250 shares of Salesforce, boosting its stake in the company by 68% to 263,300 shares.
Cloud computing is a booming industry, and Salesforce’s numbers completely reflect that.
In the company’s most recent quarter, revenue surged 26% year over year to $7.3 billion. Management also issued upbeat guidance: It now expects full-year 2023 revenue of $32 billion, marking a year-over-year increase of 21%.
But the stock is down a staggering 39% in 2022, giving contrarian traders something to think about.
Earlier this week, Mizuho analyst Gregg Moskowitz reiterated a ‘buy’ rating on Salesforce. His price target of $225 implies a potential upside of more than 43%.
Fine art as an investment
Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.
That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.
Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.
And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.
On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.
Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.
Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.