Down 94%, Is Carvana Stock a Buy-the-Dip Opportunity?
Deal-hungry investors are likely watching Carvana (NYSE: CVNA) closely. Trading for just $8.90 at the time of writing, shares have fallen by a whopping 94% over the last 12 months. But a low price doesn't always mean a good value. Let's discuss three reasons why the embattled online dealership could get even cheaper over the long term.
Founded in 2012, Carvana is a used-car dealership that aims to disrupt the industry with an e-commerce business model, in part by using aggressive marketing gimmicks such as car vending machines in major U.S. cities. Historically, the company enjoyed a respectable growth rate before growth really soared during the stay-at-home period at the height of the COVID-19 pandemic.
Now, Carvana is giving back ground as macroeconomic conditions tighten in the automotive industry.
Source Fool.com
