Carvana (NYSE: CVNA) was often called the "Amazon of used cars" when it went public nearly six years ago. It aimed to disrupt traditional dealerships with a streamlined online marketplace that set firm prices and simplified the financing process to "get the car without the car salesman." It also gained a lot of attention with its car vending towers, which took up less space than parking lots and enabled its customers to pick up their own vehicles.
Carvana's stock skyrocketed to an all-time high of $370.10 on Aug. 10, 2021. A $1,000 investment in its IPO at $15 would have blossomed to nearly $25,000. But it would have subsequently withered to about $500 as its stock dropped to around $8. So what happened?
Image source: Carvana.
Source Fool.com