CVNA - No Carvana Isn't About to Turn a Profit
2023-05-06 08:05:00 ET
Online used car retailer Carvana (NYSE: CVNA) made progress in the first quarter, bringing down inventory levels, boosting gross profit per vehicle sold, and inching toward profitability. There's no denying that.
But the company's Q2 outlook, and the headlines surrounding it, need to be put into context. "Carvana expects to record core profit in second quarter; shares jump" reads a headline at a major news outlet. "Carvana expects to achieve adjusted profit sooner than expected amid restructuring; shares surge" reads another.
One would think, based on these headlines, that Carvana is mostly out of the woods. But the "core" profit and "adjusted" profit that are being talked about is adjusted EBITDA , and no one should take that seriously.
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No, Carvana Isn't About to Turn a Profit