CVNA - Carvana Stock Has Soared More Than 1000% This Year. Time to Sell?
2023-07-20 08:31:00 ET
Shares of online auto-dealer Carvana (NYSE: CVNA) have seen parabolic returns this year. As of this writing, the company's shares have risen over 1,000% year to date.
Some of this gain was fueled by a big jump in the share price this week as the company reported better-than-expected revenue and significant positive adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ). The company also impressed investors with an agreement with noteholders to restructure its debt in a way that will significantly reduce its interest expense over the next two years.
While Carvana's astronomical returns have undoubtedly been exciting for investors, they shouldn't get too attached to the stock. Its valuation, at this stage, is extraordinarily difficult to justify. Shareholders may want to take advantage of the stock's run-up and sell, moving their capital to a less speculative investment.
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Carvana Stock Has Soared More Than 1,000% This Year. Time to Sell?