This year has started out great for growth stock investors. Many companies that were down 50% or more in 2022 have soared since the calendars turned over on Jan. 1. Online used card marketplace Carvana (NYSE: CVNA) is an extreme example of this trend, with shares soaring 16% in 2023 after falling a staggering 98% in 2022. Could this indicate that the worst is over for Carvana shareholders? I think that is unlikely.
Investors are bidding up shares of Carvana to start 2023. Here's why this is just noise and why you should avoid buying the stock today.
Carvana was one of the hottest stocks of the 2019-2021 bull market. At one point, shares were up 3,000% since the company went public in 2017, hitting a market cap of over $60 billion. Today, shares are down 50% from the initial public offering ( IPO ), and the total market capitalization of the company sits at $1.2 billion, a shocking turn of events for a fan favorite in the growth investing community.
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Carvana Stock Is Up 16% This Year. Here's Why I'm Still Not Buying Shares.