CVNA - Why Carvana Stock Is Plummeting Today
2023-06-09 16:34:19 ET
After recording explosive gains in Thursday's trading, Carvana (NYSE: CVNA) stock lost ground in Friday's daily session. The automotive e-commerce company's share price fell 21.3% today, according to data from S&P Global Market Intelligence .
Carvana stock had rocketed higher Thursday after the company said that it was expecting to record more than $50 million in non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) this quarter. But investors and analysts appear to be reassessing the significance of the company's new forecast.
D.A. Davidson analyst Michael Baker published a note on Carvana stock today indicating that promising guidance in the current quarter stems from accounting practices and one-time events. Accordingly, it's not clear that Carvana is actually making significant progress on its path toward profitability.
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Why Carvana Stock Is Plummeting Today