The stock market has soared this year, but (NYSE: CVNA) and Wayfair (NYSE: W) have rocketed past the major indexes on their way to enormous gains. Investors are betting that turnarounds are in the cards. Here's why they're likely to be wrong.
Shares of online used car retailer Carvana are up around 800% this year. While the stock has been rising for the past few months, the most recent development that sent shares rocketing higher was a debt restructuring deal announced in July.
Carvana's core problem is that it has too much debt. Sales volumes have been tumbling due to rising interest rates and a tough economic environment. Retail units sold crashed 35% year over year in the second quarter, and revenue tumbled 24 %.
Source Fool.com