Just looking after hours...CVNA is up about 32%. I don't follow the stock...But it seems the biggest surprise so far in the earnings season.
If they were foolish enough to hold a short position going into earnings they're definitely feeling some pain right now.
day chart Mountain peak in Aug 2021. from day 1 to May 2022, volume was very low. Since then, the volume has grown. Since May 2023, lows are slowly getting higher and higher. When you see the price went up significantly, do not think the shorts got squeezed. There could be hardly any SHORTS.
I have no position and this is purely a hypothetical- CVNA ceo and cfo will be doing a perp walk in the coming years I don’t believe their numbers for a second. Out of nowhere all of a sudden making $6300 profit on every vehicle sold. No shot.
Just my thoughts... These earning are smoke and mirrors!! Fifty two week low of $6.92...I am not saying they are cooking their books, but I do not trust these numbers. What's the P/E on this thing (after hours)?? I worked in a Hershey plant for about 5 years (sub contractor). They had so much differed maintenance (one season) that they were keeping the plant running by duck tape and glue! Someone in management told me just wait... They were making their quarter for bonuses...The next quarter they will have a loss (do the work). He then said..."after that bad quarter, buy up the stock". Just a taste of what is going on in the used car market... I know some of this is EV vs ICE...I get it. It's the upside down situation (car loans), that makes me think the whole truth is not being revealed.
One comment on Yahoo! Finance...I don't know if true or not. Just trying to get a feel for the company... 21 April, 2024 "As of December 31, 2023, we offer all customers a nationally pooled inventory of over 33,000 high-quality used vehicles on our website." On the Friday commercial on Mad Money, Garcia stated Carvana has over 500,000 parking spots. That's the amount of parking at about 400 Wal Mart supercenters. Their parking facilities are 94% empty. They also have huge excess capacity for offices, reconditioning centers, auction barns, car haulers etc. All siting and deteriorating, requiring interest, maintenance, taxes, insurance, rents, and utilities. The huge new Arizona company headquarters was stopped mid construction and is rotting. Guess what happens to all those hundreds of idle car haulers.....Lot Rot. All of it capital assets that are a huge drag, rather than a source of generating income. They value their property and equipment assets as $2.982 B in the annual report. They are paying 13.2% interest on those assets to sit 94% idle. The P&E value carried is what they spent on them at inflated prices. The liquidation value of that will be pennies on the dollar. "Well...they can sell some of that to raise cash to stay alive". Nope, all of it is mortgaged and cross mortgaged down to the paper clips left in the desks in the millions of sf of empty offices. Even though they have huge amounts of empty offices, they still spend millions renting office space from Daddy. Me...Looks like GameStop, without the option money.
I think the Carvana business model is based on the idea that Millennials and Gen Z'ers hate any kind of contact with another actual human being. They'd rather just sit on their couch,on their iPhone and order their next vehicle online and have it delivered to their driveway.
Since May 2023, lows are slowly getting higher and higher. When you see the price went up significantly, do not think the shorts got squeezed. There could be hardly any SHORTS.