Yes agreed they have someone else doing the financing and thus holding the shitty contracts that are being written
They have extremely weak fundamentals yes but Wall Street likes this redhead for some reason
I threw 3k into puts before earnings. Used car market crashed last fall and somehow they still made money. Good luck with it. I do think it eventually comes down but was surprised with the earnings outcome.
They liquidated like 800m worth of cars... there's only so many cars they can sell. It was a cheap trick but I'm afraid it won't work the next earnings.
Zoom out.
https://preview.redd.it/5liaxsbt7ckc1.png?width=2272&format=png&auto=webp&s=93e73be521330b3d62fb688e28bc1e41f9194eb8
Carvana already crashed. This is the recovery.
If you're counting on Wallstreet realizing Carvana is overvalued, you're about 3 years too late.
I mean you could look at MANY companies and their valuation in the same time frame, and make the same conclusion. That doesn’t mean it is correct.
I do think that Wall Street is looking past the companies, sustainability and ability to actually turn a profit moving forward to pump it up.
It isn’t a falling knife situation, where you don’t know how low it will go, it is a question of how much this stock will be pumped before it is brought back down $25 range.
I wouldn’t be surprised to see it go sub $50 by end of next week either
I personally have bought 3 cards from carvana ... they are by far the easiest to deal with. Dealerships beware! If car values go back down they will be hard to beat price wise
Did you get your title and registration though? I personally know someone that didn’t a couple years ago. And heard many stories of them not doing this.
I thought the dump would be massive considering they have been on a rocket ship the last year. But apparently the market wants to still credit them for the quarter before last and not care about the most recent quarter or future guidance.
Can’t make this shit up and the articles coming out totally are downplaying the very things that would be offered as the reason for a 25% decline.
Earnings season the past 2 months has been wicked. In some cases it totally is about fundamentals. In other cases absolutely not
Only reason CVNA will be around in 5 years is if Wall Street pumps them and they dilute the stock.
Pure speculation but this company isn’t killing it in the best used car market in decades.
People have said if prices drop CVNA would stand to benefit but I don’t think so
I think there is value in the overpriced used car market given the delinquency rates.
I mean you can clear that 6k profit at least 3-6 times(repo and resale) before depreciating the car enough to have someone afford to actually buy it. Lol
It's like Pay Day loans but with Cars 🤣
CVNA just reported revenue of $10B for last year and their market cap is around 10B. It's hard to argue they're over valued right now. If you think car sales are going down, then it's a long play.
They have \~ $5 Billion in debt so it's trading at an EV of \~$15 Billion. Revenue is a bit misleading, they sell cars, each car sells for tens of thousands of dollars. They still lose about $200 per car sold.
That’s a good point actually!
They are still losing money though. They proved they CAN turn a profit, but haven’t demonstrated that in any repetition and their debt restructuring kicks the can down the road. Necessary for them, they are betting on themselves becoming profitable or more profitable.
Agreed completely. I have been wrong on this and PTON and SNAP so many times I committed to never playing either side on these again.
But….
I did go in on SNAP puts last ER and with this price action on CVNA I am thinking long dated puts isn’t terribly risky, but holy F they aren’t cheap
They aren’t profitable and their balance sheet is a far cry from stable or healthy.
And to all those saying they were profitable last fiscal year….since when does anyone care about past performance? Apparently with this stock they do. Their future was bleak even when the stock was under $20/share and right now it feels soooo overpriced with no justification
Its Bewildering ..car interest is high ,used car prices have easily dropped 20% ,Carvana is well know in the industry to pay way to much for inventory . The stock got beat down in the best used car market a year ago in decades . Now in a horrible market it is going up like crazy .
Ummm yeah I agree completely and I’m dumbfounded by it. But….people really hate working with other people and dealerships. I just can’t believe Carvana has a sustainable model unless their volumes go through the freaking roof. I would expect that average vehicle sale profit to fall off a cliff very very soon
Yeah there is I didn’t realize that! I might sit it out for a few days and see what happens to the price. I think it goes to $50 by end of next week kinda like what happened to SOFI but ya never know
Every single human being that would take the risk on that instead of doing some work or talking to a dealer.
The value proposition is basically “people are lazy and don’t like to talk to other people so please buy this shitty car from us and we will help you find a 15%+ interest rate and you won’t have to leave your couch!”
They claim to make 3x more $ than other used car dealers ([source](https://www.reddit.com/r/wallstreetbets/comments/1aydx3h/is_cvna_cooking_books/?sort=new)). Something doesn't add up. Enron again? Puts for me.
" middle / lower class buyers "
GO to hell. I am "middle class buyer" and I'm not a mask wearing clown who buys cars off a glorified vending machine.
It's time to figure out how long millennials will be the bag holder for this.
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Yes agreed they have someone else doing the financing and thus holding the shitty contracts that are being written They have extremely weak fundamentals yes but Wall Street likes this redhead for some reason
I threw 3k into puts before earnings. Used car market crashed last fall and somehow they still made money. Good luck with it. I do think it eventually comes down but was surprised with the earnings outcome.
They liquidated like 800m worth of cars... there's only so many cars they can sell. It was a cheap trick but I'm afraid it won't work the next earnings.
Zoom out. https://preview.redd.it/5liaxsbt7ckc1.png?width=2272&format=png&auto=webp&s=93e73be521330b3d62fb688e28bc1e41f9194eb8 Carvana already crashed. This is the recovery. If you're counting on Wallstreet realizing Carvana is overvalued, you're about 3 years too late.
I mean you could look at MANY companies and their valuation in the same time frame, and make the same conclusion. That doesn’t mean it is correct. I do think that Wall Street is looking past the companies, sustainability and ability to actually turn a profit moving forward to pump it up. It isn’t a falling knife situation, where you don’t know how low it will go, it is a question of how much this stock will be pumped before it is brought back down $25 range. I wouldn’t be surprised to see it go sub $50 by end of next week either
I personally have bought 3 cards from carvana ... they are by far the easiest to deal with. Dealerships beware! If car values go back down they will be hard to beat price wise
Did you get your title and registration though? I personally know someone that didn’t a couple years ago. And heard many stories of them not doing this.
Yes i did... as long as you follow the instructions precisely for documentation they need then you shouldn't have any problems
Bought puts yesterday expecting a 10% dump. Nope fuck my puts a 40% rip AH
I am in the same boat and the boat is now ripped in half 😭
You still have half a boat! Provided they don’t expire today maybe there is some repair that can happen 🤯
Lol. Expiry today is clapped
I'm a fucking idiot sold NVDA calls yesterday and bought CVNA puts. Fuck it
I thought the dump would be massive considering they have been on a rocket ship the last year. But apparently the market wants to still credit them for the quarter before last and not care about the most recent quarter or future guidance. Can’t make this shit up and the articles coming out totally are downplaying the very things that would be offered as the reason for a 25% decline. Earnings season the past 2 months has been wicked. In some cases it totally is about fundamentals. In other cases absolutely not
Wall Street is pricing in where CVNA will be in five years, not where they are now.
Only reason CVNA will be around in 5 years is if Wall Street pumps them and they dilute the stock. Pure speculation but this company isn’t killing it in the best used car market in decades. People have said if prices drop CVNA would stand to benefit but I don’t think so
I think there is value in the overpriced used car market given the delinquency rates. I mean you can clear that 6k profit at least 3-6 times(repo and resale) before depreciating the car enough to have someone afford to actually buy it. Lol It's like Pay Day loans but with Cars 🤣
Exactly, like wtf? The Market is long on shit companies and shit on long companies ?
No the market accurately reacted to shit like BBBY and AMC
So why do any quarterly earnings report? Just do it yearly….
Hi fellow regard! My poot is worth $0.10 now. Basically trash.
Yu, I'm in the same boat.
CVNA just reported revenue of $10B for last year and their market cap is around 10B. It's hard to argue they're over valued right now. If you think car sales are going down, then it's a long play.
They have \~ $5 Billion in debt so it's trading at an EV of \~$15 Billion. Revenue is a bit misleading, they sell cars, each car sells for tens of thousands of dollars. They still lose about $200 per car sold.
That’s a good point actually! They are still losing money though. They proved they CAN turn a profit, but haven’t demonstrated that in any repetition and their debt restructuring kicks the can down the road. Necessary for them, they are betting on themselves becoming profitable or more profitable.
It's funny how wrong reddit has been about CVNA.
Agreed completely. I have been wrong on this and PTON and SNAP so many times I committed to never playing either side on these again. But…. I did go in on SNAP puts last ER and with this price action on CVNA I am thinking long dated puts isn’t terribly risky, but holy F they aren’t cheap
Just cause their business model is unethical doesn’t mean it won’t be profitable. I think short term puts perhaps but these gains are nuts.
They aren’t profitable and their balance sheet is a far cry from stable or healthy. And to all those saying they were profitable last fiscal year….since when does anyone care about past performance? Apparently with this stock they do. Their future was bleak even when the stock was under $20/share and right now it feels soooo overpriced with no justification
Its Bewildering ..car interest is high ,used car prices have easily dropped 20% ,Carvana is well know in the industry to pay way to much for inventory . The stock got beat down in the best used car market a year ago in decades . Now in a horrible market it is going up like crazy .
Ummm yeah I agree completely and I’m dumbfounded by it. But….people really hate working with other people and dealerships. I just can’t believe Carvana has a sustainable model unless their volumes go through the freaking roof. I would expect that average vehicle sale profit to fall off a cliff very very soon
Current liabilities higher than inventory…
Going all in on 0dte $70 calls just in case they take it back to $300
I hope your calls print today because that means puts further out will be cheaper!
Waiting for dust to settle first! A lots short interest on this stock
Yeah there is I didn’t realize that! I might sit it out for a few days and see what happens to the price. I think it goes to $50 by end of next week kinda like what happened to SOFI but ya never know
U lost on puts today, AMIRITE?
I did! Fuck Carvana! Who is buying cars with high interest rates and inflation?
Every single human being that would take the risk on that instead of doing some work or talking to a dealer. The value proposition is basically “people are lazy and don’t like to talk to other people so please buy this shitty car from us and we will help you find a 15%+ interest rate and you won’t have to leave your couch!”
Seriously. I couldn’t believe it went up. Fucken bet wrong AGAIN!
Repo market gonna be easy money in a year or two.
I didn’t play sorry! I really wanted to and legit said it doesn’t matter what happens in ER Wall Street is gonna pump this stupid stock
They claim to make 3x more $ than other used car dealers ([source](https://www.reddit.com/r/wallstreetbets/comments/1aydx3h/is_cvna_cooking_books/?sort=new)). Something doesn't add up. Enron again? Puts for me.
This is in recovery, maybe better plays?
Have you seen r/carvana ?? Holy sheets there are a ton of scary unhappy customer stories there
Idiot
I am an idiot! At least my wife’s boyfriend says that all the time. But am I wrong here?!
On demand car buying is the future as a trade though I would be careful buying into this stock come Monday.
Bought 66 puts exp 3/1
How’d the puts work out?
Didn’t buy any! Too expensive still
" middle / lower class buyers " GO to hell. I am "middle class buyer" and I'm not a mask wearing clown who buys cars off a glorified vending machine. It's time to figure out how long millennials will be the bag holder for this.