I'm seeing a lot of negativity on blind about Amazon's investment in Rivian because of the $7.6 Billion loss we posted this quarter. However, the $7.6 Billion represents a markdown from the year end position of $15.6 Billion. My understanding is that Amazon's total investment in Rivian has been somewhere between $1.3 and $2 Billion. So currently, the Rivian investment has returned somewhere between 400% and 700%.
YET, somehow, most comments on Blind are looking at the investment as a total fail. I assume this is actually coming from a place of ignorance, as most of these comments are assuming Amazon experienced an actual loss of its own funds from this, when in reality it just represents a correction to an equity position that is currently illiquid.
So, was Rivian a poor investment?
#tech #amazon #rivian
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comments
Maybe there is some mandatory share lockup rule that I am missing.
What I will say is its messed up the market reacted the way it did to our earnings. The fact that RIV had fallen drastically since the end of FY21 was all public information and should of been priced in accordingly.