Shares of online car dealership Carvana (NYSE: CVNA) have fallen hard,  dropping 97% from their high. That includes a staggering 39% decline the day after it released third-quarter earnings. A sharp decline can make a stock look like a lottery ticket and tempt risk-seeking investors into buying shares in the hopes of a rebound.

Unfortunately, Carvana is facing severe financial issues threatening the company's future. Nobody can be sure what will happen, but I'll break down the company's troubles to show you why the stock's risks aren't worth rolling the dice on now.

If you're unfamiliar with the company, Carvana is a used-car dealer using an e-commerce business model to challenge the industry's status quo of traditional dealerships. It features online shopping, haggle-free inventory pricing, and flashy "vending machines" -- tall buildings with large windows where consumers can pick up their purchases. You can also have the vehicle delivered to you. It's a straightforward user experience that cuts out the hours of stressful haggling that can come with buying a used car.

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Source Fool.com