CVNA - Why did Carvana stock surge on Thursday? Optimistic outlook sparks a squeeze
2023-06-08 16:02:54 ET
Shares of heavily-shorted Carvana ( NYSE: CVNA ) rocketed over 50% higher on Thursday after offering an upbeat Q2 forecast .
The beleaguered online auto seller said it now expects to achieve adjusted EBITDA above $50M in Q2 and boosted its adjusted total gross profit per unit by $1,000, to above $6,000 per unit.
“Our record-breaking 2023 first quarter is evidence that our strategy is working and our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected,” CEO Ernie Garcia commented. “The team’s persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan.”
The positive pre-announcement sparked a short squeeze for the stock. According to Seeking Alpha data, Carvana courts a short interest near 65%. Other popular shorts popping on Thursday included Beyond Meat ( BYND ) and Vroom Inc. ( VRM ).
More on short idea stocks:
For further details see:
Why did Carvana stock surge on Thursday? Optimistic outlook sparks a squeeze