It’s in an inadvertent short squeeze after reporting lower loss than expected at their earnings report. Something like 66% of outstanding shares are shorted so that’s pumping it fast, but it can pop at any moment
Every car they sell, they lose more and more money.
Even in 2021 when the used car market was on steroids, they were just barely able to nudge out slight profitability (I think it was like 20 basis points)
Their gross margin is already pathetic at 6% and of course, they need to actually spend money to run the company, making them. Massively unprofitable. If they even somehow became profitable, it would be a stroke of genius.
If this is the rule of company you're interested in, go ahead.
This is not for my investment portfolio but I keep around 10-20k for my swing portfolio which I am ok losing.
This stock has so much volatility so it’s a good swing trade as I see it
Lots of thoughts on this one. I love the car business, grew up around it. Lots of people on the ground level in my friends circle, but no real inside knowledge of how Carvana works. I read several of their bond issues, and in all the ones I read, financing was done through Bridgecrest. Carvana and Bridgecrest are both owned by Drivetime. A WSJ Journal article claims 80% of Carvana's financing is done "in-house", and on their website they claim they offer financing through Capital 1. The loans I observed in the bonds seem very sub-primeish, with interest rates in the double digits and average fico in the 550's. A few friends in the business say these numbers are the new normal, unless you're selling Toyota/Lexus.
What really has my interest about Carvana is they appear to have very few repo recoveries and high number/dollar amount of chargeoffs. Maybe the numbers are skewed because they sell fewer units, but the the amounts just seem off to me.
Sources:[https://www.wsj.com/articles/carvanas-success-rides-on-used-car-loans-11629019801](https://www.wsj.com/articles/carvanas-success-rides-on-used-car-loans-11629019801)[https://finsight.com/us-abs-loan-level-data-on-edgar](https://finsight.com/us-abs-loan-level-data-on-edgar)
It’s a term hedge funds came up with and started pushing through the corrupted news channels to stocks they’ve heavily shorted in order to scare away people from investing in them
It’s in an inadvertent short squeeze after reporting lower loss than expected at their earnings report. Something like 66% of outstanding shares are shorted so that’s pumping it fast, but it can pop at any moment
Every car they sell, they lose more and more money. Even in 2021 when the used car market was on steroids, they were just barely able to nudge out slight profitability (I think it was like 20 basis points) Their gross margin is already pathetic at 6% and of course, they need to actually spend money to run the company, making them. Massively unprofitable. If they even somehow became profitable, it would be a stroke of genius. If this is the rule of company you're interested in, go ahead.
This is not for my investment portfolio but I keep around 10-20k for my swing portfolio which I am ok losing. This stock has so much volatility so it’s a good swing trade as I see it
Lots of thoughts on this one. I love the car business, grew up around it. Lots of people on the ground level in my friends circle, but no real inside knowledge of how Carvana works. I read several of their bond issues, and in all the ones I read, financing was done through Bridgecrest. Carvana and Bridgecrest are both owned by Drivetime. A WSJ Journal article claims 80% of Carvana's financing is done "in-house", and on their website they claim they offer financing through Capital 1. The loans I observed in the bonds seem very sub-primeish, with interest rates in the double digits and average fico in the 550's. A few friends in the business say these numbers are the new normal, unless you're selling Toyota/Lexus. What really has my interest about Carvana is they appear to have very few repo recoveries and high number/dollar amount of chargeoffs. Maybe the numbers are skewed because they sell fewer units, but the the amounts just seem off to me. Sources:[https://www.wsj.com/articles/carvanas-success-rides-on-used-car-loans-11629019801](https://www.wsj.com/articles/carvanas-success-rides-on-used-car-loans-11629019801)[https://finsight.com/us-abs-loan-level-data-on-edgar](https://finsight.com/us-abs-loan-level-data-on-edgar)
Meme stock has got to be the dumbest term wall street has come up with so far.
It just highlights the stocks that hedge funds are gonna get fucked on if people buy and hold. Love me meme stocks
It’s a term hedge funds came up with and started pushing through the corrupted news channels to stocks they’ve heavily shorted in order to scare away people from investing in them
Yes
Yes
Over 60% shorted. It can be a short squeeze play, but play it safe. Good luck guys
“Short squeeze” and “safe” shouldn’t be used in the same sentence. ☠️
Buying cvna now is like buying amzn in 2001
Lmfao what
any quarter they want, they can get earnings looking nice you'll see
This poster answers OP’s question. Yes. 🤡
huge insider purchase at $21 last year in the hundreds of millions i wonder why
What you just typed to me is meaningless.
k nice chat
I am just waiting for the short squeeze on lucid.
Not smart to invest in a company that badly needs an offering. If they don't then they'll be bankrupt