I bought Carvana at $16 and now I’m down 50% when it came down to $8. Carvana was close to $400 last year. Is Carvana going to make it the the recession? Yes, my investing strategy is “Audience Poll”.
Lol same boat but I bought Vroom. That POS went from $60 to $0.8
Lol that’s the other stock I’ve been looking at. If it drops below 50 million market cap, I’m buying.
🤦♂️OP, I see you still haven't learned the lesson yet. Try to watch one of those popular Peter Lynch videos. Just because a stock is down, doesn't mean it has to go up.
Curious why Carmax hasn’t dropped as much. Aren’t they doing exactly the same thing?
Without the title fraud, sure
Good question, It might have something to do with the profit per unit or the type of debt these companies have undertaken. A lot of these i buyers and used car buyers bought homes and cars on variable APR. They are paying much higher interest rates as they go up. Just pulled that out of my ass.
So it's dropped from $400 to $8???? Wow
So here is the thing with $cvna . The management is really horrible. You look at CVNA and see 3b revenue quarterly. But the operating expenses and costs are super mis managed. Thus a company with almost 12b in revenue annually is at a 1.5b market cap. Absolutely atrocious management
How is management supposed to manage their way out of used car prices crashing?
It is not about the used car prices market crashing. It is how CVNA acquires these cars and sells at ridiculous low margins with high operating costs
I sold my previous car on Carvana, it was by far the best offer, but almost too much. Not sure how the company can be profitable buying into thin margins like that.
Details?
I sold my car to Shift, another online car company like carvana. They beat out car max and everyone else by like several grand. And they threw in a $300 bonus for people who sell it to them the day they show up for the inspection/quote even though I didn’t actually decide till a few days later. Pretty sure they’re gonna go out of business too at some point.
It will file for bankruptcy in another 6-9 months
👋👋👋
Their business model depends entirely on used car prices only going up, so they can pay market prices to buy cars and make a profit when selling. Now that used car wholesale prices have cratered, they're sitting on a crapload of inventory that they can't sell for a profit. Next year looks to be a bloodbath for the used car market. https://twitter.com/OtherSide_AM/status/1588996681395507200?t=t4db00rRMxTC_m_LDeUO9A&s=19
Repo rates are going up, but are still below levels seen in 2017 to 2019 (about as many cars were repo'd in 2019 as in 2008)
We've only just started the nosedive.
Bankrupt
Poor thing