Wall Street Is Giving Up on Carvana
Pandemic darling Carvana (NYSE: CVNA), known for its car vending machines and convenient delivery options, has completely fallen out of favor with Wall Street analysts. The stock was a market favorite in 2020 and much of 2021, soaring above $300 per share despite chronic losses. Shares now trade for around $5, down nearly 99% from their all-time high.
Formerly bullish analysts are finally waking up to the fact that Carvana is in serious trouble. Recent downgrades include:
Carvana is being hit by a perfect storm. Retail unit volumes are declining as demand for used cars drops, and gross profit per unit is falling off a cliff as used car prices normalize. Meanwhile, Carvana's costs are too high, and its balance sheet is a debt-ridden mess.
Source Fool.com
