There's a new focus for technology investors: make profit or bust. With the great undoing of companies like WeWork (WE), the market has turned a rather cold shoulder to companies that are simply growing without demonstrating the potential to scale to profitability. That causes a problem for companies like Carvana (CVNA) - which, despite incredibly strong growth and incremental gross margin gains, is still guzzling through gobs of cash and may not have enough liquidity to last through the year.
Since the start of the year, shares of Carvana have skyrocketed