Carvanan 1Q tulos:
Let’s put it here
Nopeata on ollut kasvu:
at no. 483; one of the fastest growing tech companies added to the prestigious list. Based on organic growth alone, only Amazon and Google made it to the Fortune 500 faster.
Carvana CEO Ernie Garcia discussing on Patrick O’Shaughnessy’s podcast. I haven’t had time to listen yet.
https://www.joincolossus.com/episodes/86846154/garcia-disrupting-the-auto-buying-experience?tab=blocks
That’s an excellent interview. Mads Christensen, who provides good analyses of Carvana, will go over it in his own podcast:
And here are the highlights from the earnings report, as they haven’t been shared here yet:
cvna-earning-release-q3-2021-final.pdf (126.2 KB)
Q3 results came out last week.
Yes, growth was still strong. And significant expansion investments continue, which will strain earnings and cash flow but at the same time strengthen the moat. The goal is to sell 2M cars per year; in Q3, just over 100k were sold, so it will take 2-3 years to reach that. Even then, the market share is still well under 10% of the entire market, meaning there is room to grow for a very long time.
Hey, is this Carvana a challenger to Carmax in the USA? Which would be a more interesting buying opportunity in early 2022, and on what basis?
Carvana is a used car seller in the US operating on a purely digital model. I’d say the competition is more against traditional brick-and-mortar stores. But the industry is still extremely fragmented; Carvana’s market share is probably one percent of the entire market. Of course, it’s growing but still small. No one seems to have over 5% either.
Unfortunately, I cannot answer the question of a better investment here as it would be considered investment advice, which is not allowed. If you are interested in these companies, you should do your own research and form your own opinion. Carvana is still in my portfolio, even though recent times have been quite a downhill slide (in terms of stock price).
The spirit of the times is such that this must be positive news! There is now great pressure to turn the operation profitable, which will slow growth, of course, but there is an existential need for it.
The Adesa deal was also finalized yesterday.
What’s Carvana’s situation nowadays? The stock is plummeting?
Were there issues with cash?
There are likely more problems, starting with the odds.
And the company’s main owner is “less reliable” – they’ve made a hell of a lot of money with this, unlike many small investors.
I had to do a bit of research when the price dropped so quickly to find out why. The familiar massive debt burden + negative returns were the biggest red flag as to why it has fallen in investors’ esteem, and the management’s actions haven’t helped.
Add in the strange problems in Illinois and the mess is complete:
https://www.nbcchicago.com/consumer/for-the-second-time-carvana-is-banned-from-selling-cars-in-illinois/2884770/
It would have been nice to take a gamble, but those double bans in Illinois are too perplexing.
As one might infer from the course speculation thread (and the silence of this forum), Carvana released its Q3 2022 results, and to put it mildly, things are going to shit – and Carvana stated that difficult times are only set to continue.
Half a billion in losses. The company has $300 million in cash and can quickly obtain $4 billion in loans. However, interest rate hikes naturally make taking out additional loans a very, very, very painful option at this moment when money is no longer free. The star dust of the pandemic darling has disappeared, and the markets have begun to price in the threat of bankruptcy.
The stock has fallen magnificently in a year from highs of over $360 to now under nine dollars. Hats off.
https://www.barrons.com/articles/carvana-sales-stock-targets-cut-51667574745?noredirect=y
And lawsuits are only continuing, larger than before, as cars cannot be registered on time:
Carvana upgraded its guidance today and the share price is up about 50%.
CARVANA RELEASES IMPROVED Q2 2023 FINANCIAL OUTLOOK AHEAD OF INDUSTRY CONFERENCE
Jun 08, 2023
The Nation’s Largest Online Used Auto Retailer Announces It Expects To Achieve Adjusted EBITDA above $50 Million and Total Gross Profit Per Unit above $6,000 in Second Quarter 2023
https://investors.carvana.com/tools/viewpdf.aspx?page={DE79394D-E400-41D6-A644-3DC84E94EA2B}
Many people rushed to buy into this 57% short interest, i.e., to cover their shorts.
When I posted that chart over the weekend, I was thinking someone was fueling the rocket.
I also bought, but I managed to sell before the “launch”. They aren’t shorted this heavily for nothing. Lousy companies and huge risks.
