CVNA - Why Carvana Stock Is Up 14% Today
2023-07-10 15:50:22 ET
Shares of used car dealer Carvana (NYSE: CVNA) are higher by 14.5% as of 3:34 p.m. ET Monday, according to numbers from S&P Global Market Intelligence . Investors are inferring upside from an industry-related report posted today, and at the same time, the stock may be benefiting from a short squeeze.
Don't look for a company-specific reason Carvana shares are up again today. You won't find one. Rather, you should take a step back to inspect relevant headlines and then connect the dots. They're superficially bullish.
Perhaps the biggest of these dots is Monday's report from Cox Automotive. The automobile market research outfit's latest number-crunching analysis indicates that wholesale used car prices fell 10.3% year over year in June. This bodes well for Carvana since it means that the cost to purchase cars is falling, allowing for easier sales and wider profit margins.
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Why Carvana Stock Is Up 14% Today