Investment Thesis:
Carvana (CVNA) has struggled to show that its business model is sound as it has racked up continued losses over the years. The stock price has risen dramatically in 2020 on the dual narratives of increased shop at home for consumers and the recent increase in the price of used cars both being beneficial to Carvana. The reality of a challenging operating environment and poor profitability create significant risk for shareholders at the current stock price. It is strongly recommend that longs take profits or hedge positions and alternatively contemplate initiating