CVNA - Does Carvana's Debt Deal Set Shareholders Up for Losses?
2023-08-03 08:07:00 ET
The stock of Carvana (NYSE: CVNA) has been on a tear this year. The auto seller began the year staring bankruptcy in the face. But a debt restructuring deal has offered some relief and could even put Carvana on a path to positive free cash flow.
Nonetheless, the deal, which eliminates most of its near-term debt obligations, appears to be financed mainly on the backs of shareholders. Hence, those who own this retail stock are likely being set up for losses for three reasons.
Carvana stock, which began the year at $4.81 per share, has already made 2023 gains of approximately 900% as of this writing.
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Does Carvana's Debt Deal Set Shareholders Up for Losses?