1 Super Growth Stock Is Down 90% and Reminds Me of Amazon in 1999

Key Points

• Early expectations were not met.

• Patient investors are getting a bargain at today's prices.

• 10 stocks we like better than Rivian Automotive ›

Amazon (NASDAQ: AMZN) has been one of the best investments of all time. But the road hasn't always been easy for investors. From 1999 to 2001, Amazon shares fell in value by as much as 90%. It wasn't until 2009 that shares surpassed their former all-time highs -- nearly a decade of sideways returns! Of course, after that point, shares skyrocketed, making Amazon one of the most valuable companies in the world.

Right now, there's one growth stock that reminds me a lot of Amazon in 1999. However, big returns could come much sooner than people expect. In fact, Amazon is the biggest shareholder of the company below, owning roughly 14% of the entire business.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Expectations are incredibly low for this exciting growth stock

In 2021, several electric car stocks went public to great fanfare. Expectations were incredibly high, and at one point, some EV stocks were trading at 7,500 times sales.

After going public on Nov. 10, 2021, investors expected big things from Rivian (NASDAQ: RIVN). Unfortunately, reality did not meet expectations. Sales grew from essentially zero to more than $5 billion in the years that followed the company's IPO but the stock price sank by nearly 90%. Why? Because the market had priced in even more growth than the company was capable of. This is a great reminder to investors: No matter how fast a company is growing, it will ultimately be the price you pay for a stock that determines your final return. Pay too much for growth, and you can still lose money over time.

Right now, Rivian's valuation is near rock bottom. Shares trade at just 2.8 times sales -- a far cry from its 60 times sales valuation in 2022. For comparison, Tesla trades at roughly 11 times sales, with EV maker Lucid Group trading at around 7 times sales. As we'll see, however, Rivian's growth could be about to surge once again, making today's valuation shockingly cheap.

Image source: Getty Images.

Will Rivian become the next Amazon?

Rivian reminds me of Amazon back before its growth really took off. Rivian has the potential to become a $1 trillion stock. Just look at Tesla. While Tesla has other business segments like solar, distributed battery systems, and a fledgling robotaxi division, the vast majority of its sales still come from electric vehicles. Even before the excitement over Tesla's robotaxi service took hold, the company attained a $1 trillion market cap on several occasions. From today's valuation, Rivian stock would need to rise roughly 65 times in value to reach a $1 trillion market cap. This type of rise would turn a $15,000 investment into more than $1 million.

Is this type of rise possible for Rivian? Absolutely. But as with Amazon, it will take many years to fully play out. The company currently only has two vehicles in its lineup: the R1T and R1S. Both can cost upward of $100,000, depending on options. But starting in 2026, management expects to begin production of three new models, all priced under $50,000. When Tesla launched its affordable models -- the Model Y and Model 3 -- sales exploded, turning it into the company it is today. The same could soon be true for Rivian despite its rock-bottom valuation.

Rivian has a lot of similarities to Amazon in 1999. Shares were once priced for perfection, only to suffer gigantic losses. But the long-term growth potential remains. Investors willing to stay patient could replicate Amazon's impressive long-term gains.

Should you invest $1,000 in Rivian Automotive right now?

Before you buy stock in Rivian Automotive, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,854!*

Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool has a disclosure policy.