CVNA - 2 Short-Squeeze Stocks to Sell Right Now
Coined in 2020, meme stock refers to beaten-down, unprofitable companies with share prices massively inflated by retail investors looking to trigger short squeezes. This type of trading behavior seems to be reemerging in companies like Carvana (NYSE: CVNA) and Bed Bath & Beyond (NASDAQ: BBBY) and could be riskier than it looks on the surface. Let's discuss why investors should think twice before jumping on these hype trains.
Carvana stock hit the ground running in 2023, with its share price up by over 200% year to date, despite little to no fundamental improvements in its operations. Unfortunately for investors, a combination of tightening macroeconomic conditions and spiraling losses will make it hard for this used car dealership to hold on to its gains over the long term.
Going public through an initial public offering (IPO) in 2017, Carvana soon became a Wall Street darling because of its unique business model, which disrupts the used car market with an online-only strategy.
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2 Short-Squeeze Stocks to Sell Right Now