The stock market has historically been resilient, and investors have seen the latest evidence of that in November. After a terrible couple of months for major market benchmarks, Wall Street has roared back this month. Many market participants hope that this could be the start of a rally that will last through the end of the year and beyond.
Strong financial performance from key businesses has helped build optimism among investors, and Rivian Automotive (RIVN 6.10%) always captures the attention of the investing community when the electric vehicle (EV) manufacturer is doing well. Yet even though Rivian gained ground following its latest quarterly report, the rise in its stock price was smaller than what shareholders in Upwork (UPWK 3.40%) enjoyed Wednesday morning. Here are all the details you'll want to see.
Rivian looks for the on-ramp to growth
Shares of Rivian Automotive were up 8% in premarket trading on Wednesday, following the EV automaker's release of its third-quarter financial results late Tuesday. The company remains far from profitable, but investors were pleased to see it making progress on some key initiatives as it looks to get into high gear.
Rivian's third-quarter numbers weren't surprising, given where the company is in its development. Revenue of $1.34 billion was up nearly 150% year over year, as the company delivered 15,564 vehicles during the quarter. However, Rivian is still spending more to produce those EVs than it's getting in sales, and the company posted an adjusted net loss of $1.13 billion, or $1.19 per share.
Rivian also gave a more upbeat outlook on how the rest of 2023 is likely to go. With production increasing at a faster pace than previously expected, the EV automaker now anticipates producing 54,000 vehicles during 2023, up from 52,000 in previous projections. Moreover, Rivian expects to spend less on capital expenditures this year at $1.1 billion.
Perhaps most importantly, Rivian said that it will now be able to sell its commercial vans to more customers, as its period of exclusivity with Amazon has ended. Rivian remains committed to continuing to work with Amazon as it fulfills an order for 100,000 electric vans, but having more potential buyers is a definite positive for Rivian.
Upwork shareholders get worked up
Upwork, meanwhile, saw its stock climb by more than 20% early Wednesday. The freelance work platform provider's third-quarter financial results showed solid growth as the company seeks to take advantage of high demand for talent in developing artificial intelligence (AI) applications.
Upwork posted revenue of $176 million for the quarter, up 11% year over year. The company reversed a year-ago loss with net income of $16.3 million, as it benefited from efforts to cut costs and boost productivity.
AI is a major part of Upwork's growth plans, and the company made big strides on the AI front during the quarter. Partnerships with key AI leaders like Amazon and Adobe offer good entries into generative AI, and Upwork launched limited access to its Upwork Chat Pro generative AI app. Upwork wants to be the preeminent destination for AI-related talent and work, particularly since the high-value labor could provide a nice boost to take rates for the freelance platform.
Investors were also pleased that Upwork boosted its adjusted pre-tax operating earnings growth estimates to 10% to 11%. A $100 million stock buyback program also shows Upwork's financial strength. If AI remains in high demand, Upwork is positioning itself to take full advantage.
