CVNA - $8.3 Billion Reasons to Avoid This Growth Stock Down 98% From Its High
2023-03-23 09:33:00 ET
Carvana (NYSE: CVNA) made a big mistake when it slammed the growth accelerator during the pandemic years; total debt quadrupled in just a few years to $8.3 billion. The Federal Open Market Committee's aggressive shift in interest rate policy tightened the lending environment last year, and now Carvana's scrambling as investors demand profitability from their stocks.
But you can't escape debt unless you pay it off or go bankrupt, so Carvana is between a rock and a hard place. The stock's 98% decline from its high is a loud statement about the market's skepticism toward Carvana.
Unfortunately, Carvana's recent attempts to restructure its debt might not matter. Here are three reasons to avoid the stock altogether.
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$8.3 Billion Reasons to Avoid This Growth Stock, Down 98% From Its High