CVNA - Why Carvana Stock Skyrocketed 86% in May
2023-06-02 13:00:07 ET
Shares of Carvana (NYSE: CVNA) were soaring last month as the online used car dealer took a big step on its comeback trail by posting better-than-expected first-quarter results and guiding to an adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) profit in the second quarter.
The update helped reassure investors that the stock would be able to avoid bankruptcy after plunging as much as 99% from its peak in 2021 on slowing growth and mounting losses, especially as interest rates rise and used car prices fell for much of last year.
According to data from S&P Global Market Intelligence , Carvana stock finished the month up 86% as a short squeeze seemed to carry the stock following the earnings report. As you can see from the chart below, the stock jumped on the earnings report and remained volatile from there.
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Why Carvana Stock Skyrocketed 86% in May