Why Carvana Stock Skidded to an 18% Loss Today
Auto-dealership operator Carvana's (NYSE: CVNA) stock was a bit of a wreck on Wednesday. Panic selling in the shares resulted in a brief "circuit-breaker" halt in trading early on, but eventually, the shares limped to a more than 18% decline at market close.
Investors were spooked that a restructuring move portends serious trouble in its business. Plus, a pricey new acquisition and an analyst downgrade didn't improve the situation.
On Tuesday, Carvana formally announced an agreement with peer KAR Global for $2.2 billion. Under the terms, Carvana will be the new owner of Adesa U.S., KAR Global's auto auction business. This includes 56 Adesa locations in this country.
Source Fool.com
