3 Signs Carvana Has Hit the Wall
Carvana (NYSE: CVNA) was in the right place at the right time, allowing customers to buy used cars online at a point in history when people were stuck at home. That's a story that helped to drive a lot of online-focused companies during 2020 and the early days of the coronavirus pandemic.
In 2023, however, the story doesn't seem quite as good, with Carvana's stock down over 95% from 2021's peak. Here are three key signs of how bad the company's struggles are.
One of the things that Carvana has been doing is buying competitors, even ones that operate primarily in the physical world. This obviously costs money. Then there's the not so subtle fact that buying used cars to resell is a fairly expensive proposition. Cars are big-ticket items, even at the low end of the auto market. Carvana has had to put up a significant amount of capital up front to support its business.
Source Fool.com
