Where Will Carvana Stock Be in 5 Years?
Investors are probably familiar with the latest developments with online used car retailer Carvana (NYSE: CVNA). Benefiting from the low interest rate environment for most of the past decade, the business posted stellar growth, only to hit a brick wall in 2022 when inflation soared and interest rates climbed. It's stuck in a difficult financial position, and its future is highly uncertain.
But let's simply assume that Carvana, whose shares are down a whopping 98% from their all-time high, can successfully navigate the current unfavorable macroeconomic environment without a major financial restructuring (to be fair, this is a big question mark). If this happens, though, the question to ask is: Where will this once popular growth tech stock be in five years in an optimistic scenario? The answer might surprise you.
Despite the monumental slowdown that happened last year, Carvana's monster gains cannot be denied. Five years ago, in 2017, the company sold 44,000 cars and registered revenue of $859 million. Fast forward to 2022, and Carvana's retail units sold totaled 412,000 and its revenue was $13.6 billion. These are incredible gains. It's hard to find any business that grew that quickly in such a short amount of time. Also, keep in mind that this is not some software enterprise.
Source Fool.com
