Should you buy Carvana stock? #shorts
- 7 months ago
Here's a quick analysis on Carvana Stock.
From a fundamental perspective, the stock still looks overvalued with an enterprise value around $10 billion.
A long position in CVNA requires a belief that the company is going to be the largest used auto dealer in the country at some point in the future.
That’s a tough belief to have given recent results in an environment that doesn’t have a flush consumer or low interest rates.
Carvana still isn’t close to profitable, even with a boost to near-term profits thanks to how the company accounts for its securitized loans. Those profits presumably recede in a tougher environment.
Meanwhile, it's still got a lot of debt on its balance sheet and is facing pressure from falling used car prices. For a more detailed analysis take a look at our website.
#investing #overlookedalpha
From a fundamental perspective, the stock still looks overvalued with an enterprise value around $10 billion.
A long position in CVNA requires a belief that the company is going to be the largest used auto dealer in the country at some point in the future.
That’s a tough belief to have given recent results in an environment that doesn’t have a flush consumer or low interest rates.
Carvana still isn’t close to profitable, even with a boost to near-term profits thanks to how the company accounts for its securitized loans. Those profits presumably recede in a tougher environment.
Meanwhile, it's still got a lot of debt on its balance sheet and is facing pressure from falling used car prices. For a more detailed analysis take a look at our website.
#investing #overlookedalpha