Why Carvana Plunged 43% in November
Shares of Carvana (NYSE: CVNA) were spiraling last month after the struggling online used car dealer posted weaker-than-expected third-quarter earnings, announced another round of layoffs, and responded to increasing fears of a recession and falling used car prices.
Investors are increasingly fearful that Carvana could go bankrupt, especially if interest rates continue to rise and used car prices fall.
According to data from S&P Global Market Intelligence, Carvana finished November down 43%. As you can see from the chart below, the stock plunged on the earnings report and briefly recovered those losses before sliding again to close out the month.
Source Fool.com
