CVNA - Carvana Hopes to Outgrow This Problem but It's a Bigger Headwind Than It Seems
2023-03-29 09:26:00 ET
Carvana 's (NYSE: CVNA) stock price has fallen more than 90% over the past year. It has shifted away from its growth-at-any-cost model to one directed at getting the company to turn a profit. While management wants investors to focus on that effort, very few seem to be discussing the company's heavy debt load. It has to be watched closely.
When Carvana entered the used-car sales space, it was looking to bring the internet into a market that had long been entrenched in the physical world. It started off small, as you might expect, selling just 2,100 or so cars in 2014 across three markets. But it scaled up very quickly, selling more than 412,000 cars in 316 markets in 2022. Revenue rose from $42 million to $13.6 billion over the span.
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Carvana Hopes to Outgrow This Problem, but It's a Bigger Headwind Than It Seems