(NYSE: CVNA) shareholders had a distressing 2022. Shares of the used car marketplace fell 98% from highs, meaning that if you had invested $100 in its stock at the highs, it was trading at a value of just $2 at the end of last year. Investors were concerned over mounting losses, a high debt load, and stagnating demand for used car purchases in the United States. Many investors thought the company might file for bankruptcy. 

But in 2023, everything changed. The stock has rocketed 745% higher this year, even accounting for a 20% pullback in late September. The company has turned around its losses and extended debt maturities, which has investors optimistic about the company yet again. Does that make now the time to hop on the Carvana train? Or is this just a dead cat bounce? Let's investigate further. 

The big problem Carvana faced in 2022 was that it overextended itself right into a cyclical downturn of the used car market. The company makes money when people buy and sell used automotives through its website and mobile application, along with add-ons such as vehicle financing.

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Source Fool.com