Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

Carvana (CVNA-N) has seen a recent run-up in its stock price, attributed to a short squeeze, a favorable Fed/Powell meeting, and a strong performance in their recent earnings report. The company has shown resilience after a significant drop in share value, but experts caution about the high level of leverage, negative growth in recent quarters, and the need for profitability and reduced risk before considering investment. The stock has been deemed highly volatile, with a large short position remaining. Overall, opinions are mixed on Carvana's outlook, with a consensus leaning towards caution and risk awareness.

Consensus
Caution
Valuation
Overvalued
COMMENT
Carvana

It reports Wednesday. The stock has a monster short position. There will be a short squeeze, leading shares up in another leg higher. Note that other used companies haven't done well.

Automotive
BUY
Carvana

One of the greatest, fastest turnaround stories he's seen. It's avoided bankruptcy, raised money and has bounced back.

Automotive
PARTIAL SELL
Carvana

No reflection on company fundamentals, but take some profits after its parabolic move.

Automotive
BUY ON WEAKNESS
Carvana

It's run up lately, mostly due to a short squeeze. A good name, but wait for a pullback.

Automotive
BUY
Carvana

It got its groove Back. From mid-September till last week, shares were cut in half. The used car business is not the place to be when you're worried about interest rates. But shares are popping in the past week, partially due to a benign Fed/Powell meeting, and Carvana reported a stellar quarter last week. 

Automotive
STRONG BUY
Carvana

Is heavily shorted, but he keeps recommending it. Today, they announced earnings suddenly. Shares soared 40% today with a blowout quarter--record sales, a new deal to reduce debt by $1.2 billion, Q2 earnings beat on all lines. A great comeback story.

Automotive
COMMENT
Carvana
Short it?

Shares are up 670% in the last 6 months, but do not short it.

Automotive
DON'T BUY
Carvana
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

CVNA has recovered quite well this year, after a substantial drawdown of around 90% from its peak in 2021 and it is now trading at 0.2x times' Price/Sales (as the company has negative EBITDA, earnings and even book value). Growth was more than 100% in COVID years but went substantially to even negative growth in recent quarters. The balance sheet is highly leveraged with $8.2B of net debt while still burning cash. Overall, the company was growing really fast in the COVID years, with the promise to become the leader of used cars. However, the company is still unprofitable, burning cash quite significantly, highly leveraged, and may need to raise additional capital in tough times. We consider the share price highly volatile, and we would prefer to wait until profitability has been achieved. The company came precariously close recently to going under, and the short position remains more than 50%. Too risky for us. 
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Automotive
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TOP PICK
Carvana

Founded in 2012 and based in Phoenix, Carvana's mission is to change the way people buy cars. By removing the traditional dealership infrastructure and replacing it with technology and exceptional customer service, Carvana offers consumers an intuitive and convenient online car buying and financing platform. Carvana.com enables consumers to quickly and easily shop more than 20,000 vehicles, finance, trade-in or sell their current vehicle to Carvana, sign contracts, and schedule as-soon-as-next-day delivery or pickup at one of Carvana's patented, automated Car Vending Machines. Social media mentions are up 152% in the past 24h.

Automotive
DON'T BUY
Carvana
His data says that this market is overbought, and a pullback is coming (a buying oppoprtunity). he's concerned because we're seeing the return of rank speculation in weak stocks, like this one which was a meme stock before. A red flag! Avoid buying these after they spike and this has in the past week, though plunged today. Carvana is talking about restructuring its debt, which signals a possible bankruptcy. The used car market has withered a lot and Carvana is far from profitability. Avoid. You could lose your entire investment.
Automotive
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Discover an exclusive list and analysis of the stocks that are trending on social medias—accessible only to our Premium subscribers. With a keen focus on the stocks that are setting social media ablaze, this weekly feature offers an invaluable lens through which to evaluate market movers. Say goodbye to the endless scroll through social media timelines; we curate the buzz so you can invest your time as wisely as your money. Unlock Premium Now.

TOP PICK
Carvana
Founded in 2012 and based in Phoenix, Carvana's mission is to change the way people buy cars. By removing the traditional dealership infrastructure and replacing it with technology and exceptional customer service, Carvana offers consumers an intuitive and convenient online car buying and financing platform. Carvana.com enables consumers to quickly and easily shop more than 20,000 vehicles, finance, trade-in or sell their current vehicle to Carvana, sign contracts, and schedule as-soon-as-next-day delivery or pickup at one of Carvana's patented, automated Car Vending Machines. Social media mentions are up 35% in the past 24h.
Automotive
SELL
Carvana
For year he loved their business model, but shares got too expensive and he said sell last summer. It's down 89% from its peak. They announced 2,500 layoffs today. Sadly, it's a pandemic loser.
Automotive
COMMENT
Carvana
It reported yesterday: used car sales were higher than expected, doubling YOY, but earnings came in at a loss. They make more money per car they sell, but they can't get enough vehicles to sell. So they didn't sell as many cars as tthey wanted. Also, their gross profit per unit could decline in Q4 while general expenses will rise. He likes it as a long-term growth story, but they can't do much about the shortages. If the supply chain mess is sorted by mid-2022, he's confident that the industry can ramp up production.
Automotive
COMMENT
Carvana
20% of shares are shorted. Business is good, but he needs to research this name more.
Automotive
BUY
Carvana
Deals used cars. Even before Covid, it had a contactless business model where you could buy a used car without talking to anybody. It has staying power.
Automotive
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Carvana(CVNA-N) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 6

Stockchase rating for Carvana is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Carvana(CVNA-N) Frequently Asked Questions

What is Carvana stock symbol?

Carvana is a American stock, trading under the symbol CVNA-N on the New York Stock Exchange (CVNA). It is usually referred to as NYSE:CVNA or CVNA-N

Is Carvana a buy or a sell?

In the last year, 6 stock analysts published opinions about CVNA-N. 4 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Carvana.

Is Carvana a good investment or a top pick?

Carvana was recommended as a Top Pick by on . Read the latest stock experts ratings for Carvana.

Why is Carvana stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Carvana worth watching?

6 stock analysts on Stockchase covered Carvana In the last year. It is a trending stock that is worth watching.

What is Carvana stock price?

On 2024-06-18, Carvana (CVNA-N) stock closed at a price of $110.78.