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+11.30%
+5.40%
+28.01%
+2.63%
+2.79%
Most Trending
+11.30%
+5.40%
+28.01%
+2.63%
+2.79%
Carvana's stock has dropped significantly since the company released its Q4 2022 reports, leaving investors extremely dissatisfied. Currently, the stock is only at 2% of its peak and there seems to be little hope for a quick recovery.
Today, the stock of the used car rental and sales company is plummeting by over 24% following the release of its Q4 2022 results. The company's revenue of $2.84 billion represents a 24% decrease from the same quarter in 2021, and is below analysts' forecast of $3.02 billion. In addition, the company's net loss of $7.61 per share is significantly worse than analysts' expected loss of $2.3 per share, and a significant decline from the corresponding quarter's loss of $1.02 per share.
Carvana sold around 87,000 units, falling short of the expected 95,000 units and representing a 23% decrease from the same quarter in 2021. These sales generated $2.07 billion, which is lower than the analysts' projection of $2.26 billion, and represents a 29% decline from the corresponding quarter.
The company is facing significant challenges, one of which is its substantial debt of over $8 billion, while its total cash stands at less than $1 billion. As vehicle sales continue to decline, the company's cash generation is also decreasing, while interest payments on the massive debt burden are further complicating the situation.
Reducing expenses is inevitable for the company, especially until inflation and interest rates stabilize, and this process is expected to be challenging. The company has disclosed its intention to achieve cost savings of approximately $1 billion, which it anticipates will be realized by the end of the second quarter this year.
The company's valuation has plummeted to $1.44 billion, marking a decline of approximately 98% from its peak in the summer of 2021, when its stock traded at $377 per share. The company has not exceeded analysts' expectations since that same quarter, during which it achieved an all-time high, and the situation appears to have only deteriorated since then. It's worth noting that the company hit an all-time low last December, with its stock hovering around $3.4 per share, and since then it has increased more than fivefold. However, the stock has already lost over 45% since the start of this month, and the outlook for the company remains bleak.
Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.
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The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.
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Disclaimer:
The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained.
The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.
Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").
This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
