KMX - Why did Carvana stock soar today? Good question

2023-07-12 16:55:06 ET

Carvana ( NYSE: CVNA ) saw yet another big day of gains, with shares closing up more than 9% .

Speculative buying and short squeeze action are still the story. The auto retailer did not issue any press releases or post a new SEC filing to shake up the fundamental story. Volume of over 72M shares was far over the average of nearly 26M shares.

The stock is one of the most shorted, with 63% of shares short-sold versus more than 13% for rival CarMax ( KMX ) and 3.2% for Cars.com ( CARS ).

Last month, the company said it expects adjusted EBITDA for the second quarter above $50M, after previously just saying it would be positive. Non-GAAP total gross profit per unit is expected to be above $6K for the quarter, representing a new company record and an over 63% improvement compared to a year ago.

Shares have more than doubled from just before that announcement.

More on Carvana:

• Carvana jumps as short-sellers feel the pressure
• Top 10 most shorted stocks on Wall Street include Carvana, Beyond Meat, and more
• Bank of America pulls rating on Carvana amid elevated uncertainty

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