Why Carvana Stock Tanked 30.1% in January
Shares of Carvana (NYSE: CVNA) plummeted 30.1% in January, according to data provided by S&P Global Market Intelligence. The e-commerce platform for buying and selling used cars was downgraded due to forward expectations for its end market and was hurt by the sharp decline in high-growth stocks last month.
There was no material financial news released by Carvana last month (although it did just announce it was doing a Super Bowl advertisement), with earnings coming out on Feb. 24. However, with so much news around the used car industry, investors have gotten skittish about the company's prospects. Used car prices have soared since the start of the pandemic, creating a good portion of the inflation we are currently seeing in the United States.
Source Fool.com
