2024-04-17 08:18:42 ET
Summary
- Despite accounting concerns, Carvana Co.'s gross margins per unit have grown steadily.
- Carvana's wholesale business diversifies its revenue mix and allows flexible sales execution.
- Decade-high auto delinquencies and resilient prime interest rates mean that demand-side factors could be pressured.
- Technical analysis and valuation multiples fail to declare whether Carvana is overpriced or underpriced.
- We upgrade Carvana's stock to Hold but won't commit to a Buy rating for the time being.
Today's article examines a controversial company named Carvana Co. ( CVNA ) . Carvana's stock is one of the most volatile on the market due to its prevalence among meme stock investors, options traders, and media outlets. As such, a holistic view of the stock's fundamentals and market-based factors must be considered when delivering an opinion....
Read the full article on Seeking Alpha
For further details see:
Carvana: Hold On, Wait A Minute (Rating Upgrade)