Shares of used-car dealer Carvana (NYSE: CVNA) dropped 38.5% in December, according to data provided by S&P Global Market Intelligence. The entirety of the drop came in the month's early days, after troubling reports surfaced regarding the company's liquidity. And this issue remains unresolved going into 2023.

According to reports from Bloomberg, Carvana's management is getting legal advice about how to handle its debt. Its debt load stood at about $6.8 billion as of the end of its third quarter of 2022. Its lenders are also reportedly meeting together to figure out what they're going to do about Carvana.

Few analysts remain bullish about Carvana stock. But these reports caused one of the last ones to downgrade their outlook. According to The Fly, William Blair analyst Sharon Zackfia believes Carvana stock will now only perform inline with the market average, as opposed to her previous stance that Carvana stock would be a market-beater.

Continue reading

Source Fool.com