Why Selling Carvana Stock Could Be a Genius Move
If you invested $1,000 in Carvana (NYSE: CVNA) at the start of 2022, when it was worth $240 per share, you would have just $80 today -- a decline of 92%. And while this may look like a chance to buy a once-expensive company for cheap, investors should look before they leap. Rising interest rates and new car production are squeezing the used car market, and Carvana may struggle to survive these challenges.
Carvana went public in 2017 with an initial public offering price of $15 per share. And in the following years, it became a market darling -- soaring more than 2,000% to its all-time high of $370 in August 2021. Investors loved the company's business model, which disrupted the traditional used car dealership business by selling vehicles, accepting trade-ins, and financing purchases exclusively online.
Carvana even features flashy car vending machines as part of its elaborate marketing.
Source Fool.com
