LOTZ - CarLotz crashes business sustainability comes into question

CarLotz Inc. (NASDAQ:LOTZ -15.9%) shares are crumbling on Wednesday as analysts examine the firm’s ability to remain in business. The Richmond, Virginia-based online auto retailer missed on both bottom and top line earnings estimates on Monday while sales declined, macro headwinds hit the business broadly, and unfavorably comps hurt results. Additionally, as prices continue to rise in 2022, engagement on the company’s website declined 15% sequentially. CEO Lev Peker, who joined the firm only a few weeks ago, indicated the company is turning towards profitable growth despite the disappointing results. With shares down nearly 90% in the past year, such a turnaround is arguably overdue. Per Peker’s proclamation’s during Monday’s earnings call, it could be within reach. Wall Street, however, was less convinced. “We wonder if a company turnaround under the new leadership will be fast enough, as CarLotz only has enough liquidity for 18+ months at the current rate

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CarLotz crashes business sustainability comes into question