CVNA - Up 700% Is Carvana Stock a Bubble Ready to Burst?
2023-07-17 07:15:00 ET
Man, what a difference a few months can make. Things were looking dire for Carvana (NYSE: CVNA) at the start of 2023. Shares of its stock were off 99% from all-time highs after a few rough earning reports, and its bonds were indicating Wall Street was worried about a potential bankruptcy filing. The used-car marketplace was hemorrhaging cash after it grew expenses too quickly and had to react to slowing consumer spending on automotive purchases.
But as we sit here today, shares of Carvana stock are up over 700% year to date, making it one of the best-performing stocks in the world in 2023. Why have shares exploded higher? Is Carvana now in a bubble ready to pop? Let's get to the bottom of this highly volatile stock and see what the answers are.
There seem to be a few reasons why Carvana is up so far this year, some related to the macroeconomic environment in the United States and others more specific to the stock.
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Up 700%, Is Carvana Stock a Bubble Ready to Burst?