Why Carvana Stock Raced Ahead 25% This Morning
Carvana (NYSE: CVNA) stock took off like a rocket early Thursday morning, rising 22.7% through 9:45 a.m. ET, after the company announced a revised -- and improved -- forecast for the second quarter of 2023.
Specifically, Carvana said it expects to earn more than $6,000 in gross profit per used vehicle sold in Q2, and to report $50 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Carvana noted that if it hits these numbers, this will be the best gross profit margin per car it has ever reported. The announcement also firms up a promise Carvana made back in early May, when it said it would report positive adjusted EBITDA -- but didn't say precisely how positive. Carvana also promised in May that it will achieve positive free cash flow "in the future," but didn't say how far in the future.
Source Fool.com
Carvana Co. Stock
Our community is currently high on Carvana Co. with 9 Buy predictions and 6 Sell predictions.
With a target price of 139 € there is a slightly positive potential of 1.98% for Carvana Co. compared to the current price of 136.3 €.
