Carvana is Down 95% From Its 52-Week High. Time to Buy?
Carvana (NYSE: CVNA) has a new plan. That's a good thing, because the old one has left the company bleeding red ink, taking one-time write offs, and encumbered with debt. The stock has fallen roughly 95% from its 52-week high as investors have clearly begun to worry that the used car dealer is charting an unsustainable course.
With management shifting gears, is it time to buy? Or better to watch from the sidelines for progress on the company's self-imposed milestones?
At this point, Carvana is only an appropriate investment for the most aggressive of investors. The problems here are many. For example, it has yet to achieve full-year profitability, with the loss in 2022 expanding to $15.74 per share from red ink of $1.63 it had in 2021. To be fair, a goodwill impairment accounted for a good portion of the loss in 2022, but that in and of itself is a huge statement.
Source Fool.com
