Stocks are trying to make up for lost time, having posted a huge jump on Monday and looking to follow it up with further gains Tuesday morning. As of shortly before 10 a.m. ET, the Nasdaq Composite (^IXIC -0.52%) had risen nearly 3% to build on Monday's performance.
One of the best performers on the Nasdaq early Tuesday was Rivian Automotive (RIVN 1.03%), as the electric vehicle specialist was upbeat about its prospects for the remainder of the year, reassuring shareholders. Yet the gains for Rivian paled in comparison to an even larger up move for Poshmark (POSH), even though some shareholders in the online retail company might not be as happy as you might think about the cause.
Rivian expects a good finish to 2022
Rivian Automotive shares moved higher by more than 7% in early trading Tuesday morning. The electric vehicle (EV) company released its third-quarter production figures and gave an encouraging outlook for the remainder of the year.
Rivian said it produced 7,363 vehicles at its Illinois manufacturing plant between July and September. Over the same three months, the EV automaker delivered 6,584 vehicles to consumers.
Moreover, Rivian said it believed it would still be able to produce 25,000 cars for 2022. Given its earlier production figures of 2,553 vehicles in the first quarter and 4,401 in the second quarter, the guidance implies a sizable ramp-up to nearly 10,700 vehicles between October and December.
Investors had been somewhat worried that Rivian might follow in the footsteps of Tesla, which faced some logistics challenges that kept its vehicle delivery numbers lower than many investors had expected. However, Rivian's numbers seem to support the idea that consumers still want EVs, and that's helping to bolster confidence across the industry Tuesday.
Poshmark sells itself at a discount
Meanwhile, shares of Poshmark were up more steeply, rising 13%. News that the online retail marketplace has accepted an acquisition bid gave the share price a short-term boost, but many investors will be disappointed at the idea that Poshmark will get acquired at a fraction of the price its stock commanded at its initial public offering less than two years ago.
South Korean internet company Naver announced that it had come to an agreement to purchase Poshmark at an enterprise value of about $1.2 billion. That represents a 15% premium to where Poshmark closed on Monday, with shareholders to receive $17.90 per share in cash according to the deal's terms.
Naver sees Poshmark as having a lot of similarities to itself, making the combination fit together well. Meanwhile, Poshmark founder and CEO Manish Chandra argued that joining forces with Naver showed how strong the Poshmark brand had become. Both executives looked forward to seeing how the combined company could transform the online shopping experience.
The problem for longtime investors, however, is that the deal price doesn't come close to recouping all the losses they've suffered. Poshmark came public at $42 per share, and first-day trading took the stock above the $100 mark before beginning a long, steady decline. A lack of profitability has hamstrung Poshmark's efforts to rebound, along with rising competition among secondhand apparel specialists.
Investors in Naver don't seem convinced of the move either, sending its shares lower on South Korean stock markets. What's certain, though, is that Poshmark investors who bought shares at its initial public offering assuming that they'd get to participate in the long-term growth of the business are themselves set to get bought out at a steep discount to what they paid.
