Carvana is an American online used car dealership. It offers a fully digital car buying experience, allowing customers to purchase, finance, and trade-in vehicles entirely online. The company was founded in 2012 and is headquartered in Tempe, Arizona. Customers can either choose to have the vehicle delivered to them or pick it up from a Carvana “Car Vending Machine” located in select cities. The company’s unique business model and customer experience has attracted attention and investment, making it one of the leading players in the online used car space.
as of February 7, 2023
One of the most shorted stocks in the market right now, Carvana has had an incredible rise going from $41 million in sales in 2014 to more than 14.5 billion in the last twelve months. The problem is that it costs them a lot of money to do it. Gross profit comes in at around 11%. That said, someone managing the company could potentially be able to figure it out. Where to start? Debt. Carvana has a lot. $8 billion in fact. In the last month, the company’s stock is up huge showing more that its shares were mispriced not necessarily that the company is worth its new higher valuation.