Carvana Might Be a Buy -- Just Not Yet
Companies that conduct most of their business online were heavily favored by investors in 2020. The pandemic disrupted consumer habits and drove massive benefits for businesses that could adapt -- or that already were well-adapted -- to the new realities. Carvana (NYSE: CVNA) grew to become the second-largest used car dealer in America thanks to its e-commerce model.
The company's sales and revenue grew materially, and investors flocked to the stock, driving it 740% higher from the low point it touched in March 2020. It's an exciting story, but Carvana continues to lose significant amounts of money. It is improving in some areas, though, so the stock is worth watching as the business moves toward profitability.
Source Fool.com
