CVNA - 3 Things You Need to Know About Carvana's Q2 GPU of $6520
2023-07-25 06:20:00 ET
If you happened to own a stake in Carvana (NYSE: CVNA) prior to Wednesday morning's release of its second-quarter results, congratulations! Shares jumped another 40% that day, and most of that gain remains intact.
If you're sticking with the stock because the company is clearing $6,520 worth of gross profit for every used car it sells to retail customers, however, you may want to reconsider. The number's more than a little misleading.
Kudos to Carvana for renegotiating its total long-term debt load of $6.5 billion, lowering it by $1.2 billion. Perhaps more important right now, the company was able to postpone the repayment of most of its debt coming due in 2025 and 2027, giving it some much-needed fiscal flexibility in the meantime.
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3 Things You Need to Know About Carvana's Q2 GPU of $6,520