Why Carvana Stock Rose 14% in June
Shares of Carvana (NYSE: CVNA) stock gained 14% in June according to data provided by S&P Global Market Intelligence. The digital used car platform is still benefiting from a global new car shortage driven by supply issues and chip shortages. The gains came before two stock analysts posed opposing views on Carvana stock in late June.
Carvana stock has been on a tear since it tanked during the market crash last March, gaining nearly 1,000%. The company's all-digital platform makes it easy for customers to buy cars without visiting a showroom, and the process, which includes next-day delivery in some areas, was a powerful growth driver during the pandemic. That, combined with new car supply problems, which drove up car prices to record highs, sent Carvana sales skyrocketing. In the 2021 first quarter, retail units sold increased 76% to nearly 100,000, and revenue increased more than 100% to $2.2 billion. What's more, gross profit grew 145%. That's progress for the company, which has struggled to post a profit.
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Source Fool.com
