2023 has been a wild year yet again in the market, with stocks experiencing rapid price swings both up and down. One stock with especially high volatility is Carvana (NYSE: CVNA). The online used car marketplace shot up over 200% to start 2023, but has since given up a lot of those gains after delivering a terrible fourth-quarter earnings report. With deteriorating gross margins, a huge debt load, and a shrinking market share, Carvana is heading into 2023 on thin ice. 

Is the party over for Carvana? Here's why I think the answer to that question is a resounding yes, and why shareholders should avoid buying shares in 2023. 

In late February Carvana reported its 2022 financial results. To put it lightly, things didn't look pretty, with gross profit shrinking from $1.93 billion in 2021 to $1.25 billion last year. Combine this with rising operating expenses ($2.7 billion for the full year) and interest payments on its huge debt load ($153 million just in Q4), and Carvana posted a net loss of $2.89 billion in 2022 vs. a loss of $286 million in 2021.

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Source Fool.com