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Companies Carvana Co FollowJune 9 (Reuters) - Shares of used-car retailer Carvana Co (CVNA.N) tumbled 12.5% in afternoon trading on Friday, as analysts suspect that the debt-laden company's upbeat second-quarter profit forecast is a 'one-time' upside. Carvana, known for its car-vending machines, said it sold or securitized loans worth about $2 billion as of June 8, compared with $1.3 billion sold or securitized as of May 4. Analysts also echoed worries about Carvana's plans to profitably return to growth given the existing debt load. Last month, Carvana said it expects to post a profit in the current-quarter and planned to further bring down excess used-car inventory. "Volume is still decreasing year-over-year," Carvana chief Ernest C. Garcia said in a conference on Thursday.

Persons: Michael Baker, Davidson, Carvana, Brad Erickson, Ernest C, Garcia, Priyamvada, Shinjini Organizations: Carvana, RBC, Thomson Locations: receivables, 4Q22, 1Q23, Bengaluru

☆ Carvana short sellers suffer $1 billion loss after the used-car dealer's stock surged more than 400% this year
▼ + stars: | 2023-06-09 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Carvana short-sellers have suffered losses of more than $1 billion this year, according to Bloomberg. That's after the company's stock surged 56% on Thursday alone on the back of improved second-quarter results. The used-car dealer's shares have jumped over 400% this year thanks to its successful cost-cutting measures. Carvana said it expects total gross profit per unit to hit above $6,000 in the second quarter of 2023. The company's stock traded up 4.75% at $25.38 at last check on Friday.

Persons: —, Carvana, Ernie Garcia Organizations: Bloomberg, That's, Service, Partners Locations: Arizona

☆ Carvana shares surge after the company boosts second-quarter guidance
▼ + stars: | 2023-06-08 | by ( John Rosevear | In Jrosevear | ) www.cnbc.com time to read: +1 min

Shares of online used-car retailer Carvana surged Thursday after the company said its second-quarter results would likely come in ahead of its earlier expectations as cost-reduction measures take hold. Carvana said it also expects its gross profit per unit, or GPU, to be above $6,000 in the second quarter. That would be a new company record and an increase of more than 60% from the second quarter of 2022. The company posted a GPU of $4,303 in the first quarter of 2023, up 52% from a year earlier. Carvana's most recent guidance in May called for a positive adjusted EBITDA and adjusted gross profit per unit of $5,000 in the second quarter.

Persons: FactSet, Carvana Organizations: Wall Street

☆ Carvana provides upbeat second-quarter outlook, shares jump
▼ + stars: | 2023-06-08 | by ( ) www.reuters.com time to read: +1 min

Companies Carvana Co FollowJune 8 (Reuters) - Used-cars retailer Carvana Co on Thursday forecast a second-quarter core profit above $50 million as its cost-cutting initiatives helped drive down expenses, sending the company's shares 20% higher in premarket trade. The debt-laden company has been trimming its bloated inventory and slashing advertising expenses to help move closer to profitability and attain positive free cash flow. Carvana, known for its car-vending machines, said it sold or securitized loans worth about $2 billion, compared with $1.3 billion in loans that were sold or securitized as of May 4. The Tempe, Arizona-based company said in May it expected to post a profit in the second quarter, but had not provided any further details. Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath and Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

Persons: Stephens, Daniel Imbro, Carvana, William Blair, Nathan Gomes, Devika Syamnath, Shounak Organizations: Carvana, Thomson Locations: Tempe , Arizona, Bengaluru

Six months after Morgan Stanley pulled its rating on Carvana shares, the firm says it has "improved confidence" in the used-car dealer. Analyst Adam Jonas reinstated coverage of the stock, giving it an equal-weight rating. The analyst added that the company's reductions of selling, general and administrative expenses have been progressing better than expected, marking a "turning point" for Carvana. Carvana shares have soared nearly 130% in 2023. CVNA YTD mountain Carvana stock —CNBC's Michael Bloom contributed to this report.

☆ Used-car retailer Carvana's shares soar on upbeat second-quarter forecast
▼ + stars: | 2023-05-05 | by ( Kannaki Deka | ) www.reuters.com time to read: +2 min

Companies Carvana Co FollowMay 5 (Reuters) - Shares of Carvana Co (CVNA.N) rose 33% before the bell on Friday after the online used-car retailer forecast a surprise core profit for the second quarter, offering some relief to investors amid solvency concerns around the company. Carvana shares plunged 98% last year after the company struggled to offload used cars purchased at higher prices during the pandemic as demand fell on affordability concerns. The stock is heavily shorted, with short interest hovering around 51.2% of the float, according to Refinitiv data. Carvana said its adjusted earnings before interest, taxes, depreciation, and amortization,(EBITDA) were expected to be positive in the second quarter, a step Garcia had touted before as the first in turning the business around. Carvana shares have risen 52% so far this year amid interest from retail investors.

☆ Carvana expects to record core profit in second quarter; shares jump
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

May 4 (Reuters) - Carvana Co (CVNA.N) said on Thursday that it expects to post a profit in the current quarter and plans to further bring down excess used-car inventory as the retailer sharpens its focus on cutting costs, sending its shares surging 26% in aftermarket trading. The company also reported a smaller-than-expected loss, benefiting from cost cuts. The debt-laden company cut its inventory and slashed advertising expenses to inch closer to profitability and attain positive free cash flow. Carvana said its adjusted earnings before interest, taxes, depreciation, and amortization, (EBITDA) are expected to be positive in the second quarter. "It is clear our strategy and execution are working as evidenced by our 61% increase in gross profit per unit, the best first quarter GPU in company history," said Garcia.

Pros Check mark icon A check mark. Pros Check mark icon A check mark. Geoff Cudd, Owner of FindTheBestCarPrice.comKareem Saleh, founder and CEO of FairPlay AIRyan Wangman, loans reporter at Personal Finance InsiderHow to Choose the Best Auto Loan for Bad CreditTo pick the best auto loan, take stock of the factors that are most important to you. See our full ratings methodology for auto loans »Auto Loans for Bad Credit Frequently Asked QuestionsCan I get auto financing with a 500 credit score? Our Experts' Advice for Choosing the Best Auto Loan for Bad CreditCan you get an auto loan with bad credit?

☆ Beware these debt-heavy stocks in your portfolio as borrowing costs rise
▼ + stars: | 2023-03-27 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

That leaves companies with high debt, accustomed to low financing costs, facing refinancing risks, Evercore ISI analyst Julian Emanuel said. Here are some of the names Evercore ISI said could be hurt by a material change in borrowing and business conditions. Carvana's short-term debt is 20.4% of its total debt and its net debt to equity is 503.6%. Meanwhile, Duke Energy 's short-term debt is 10.9% of its total debt and its net debt to equity is 107.3%, according to Evercore ISI. Lastly, Walgreens Boots Alliance 's short-term debt is 17.1% of its total debt and its net debt to equity is 115.2%.

☆ Carvana customer says he bought his wife a luxury car for $68K — but it turned out to be stolen
▼ + stars: | 2023-03-25 | by ( Jordan Hart | ) www.businessinsider.com time to read: +4 min

A North Carolina man unknowingly purchased a stolen Maserati from Carvana, WTVD reported. "When they check the VIN number on the chassis, that's when they saw that it was a stolen vehicle. VIN on the car on the window and the car door was different," Scott told WTVD. Carvana sent Scott a letter saying it didn't know the car was stolen when the company purchased it. Check to see if the vehicle is stolen," Scott told WTVD.

☆ Carvana shares pop as company offers first-quarter guidance, restructures debt
▼ + stars: | 2023-03-22 | by ( Michael Wayland | ) www.cnbc.com time to read: +2 min

Shares of Carvana popped during early trading Wednesday after the embattled used car retailer pre-announced guidance for the first quarter and released plans to restructure some of its $9 billion debt load. The company's stock increased by nearly 30% Wednesday morning before leveling off at around $9.50 a share, up roughly 20%. The stock has more than doubled this year following a rapid decline last year as the company's operations and earnings disappointed Wall Street. Carvana expects a first-quarter loss of between $50 million and $100 million, drastic improvement from a loss of $348 million it reported a year earlier, despite significantly lower sales and revenue. As for Carvana's debt, the company is offering noteholders the option to exchange their unsecured notes at a premium to current trading prices in exchange for new secured notes.

☆ Why Carvana's debt deal could be a sign of trouble for other companies
▼ + stars: | 2023-03-22 | by ( Melissa Lee | ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy Carvana's debt deal could be a sign of trouble for other companiesDigging in on CVNA's debt deal. With CNBC's Melissa Lee and the Fast Money traders, Karen Finerman, Tim Seymour, Steve Grasso and Guy Adami.

CNBC Select compared more than a dozen car loan lenders based on the types of loans offered, affordability, credit requirements and shopping experience they provide. Here are our top picks for car lenders that serve customers with bad or fair credit. It offers various types of loans, including used and new car loans, refinancing and lease buyouts. If you have bad credit, getting approved for a car loan without a co-signer can be more challenging — but it's still possible. The rates and fee structures advertised for car loans are subject to fluctuate in accordance with the Fed rate.

☆ Carvana's net loss widens on cooling used car demand
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +1 min

Companies Carvana Co FollowFeb 23 (Reuters) - Carvana Co (CVNA.N) said on Thursday its net loss rose over nine-fold in the fourth quarter hurt by shrinking demand for pre-owned vehicles, sending its shares down 5% in extended trade. The debt-laden used car retailer has been struggling to sell cars it acquired at elevated rates last year when semiconductor shortages hampered supply of new cars. Carvana, known for its automated car vending machines, allowed users to buy used cars online and offered home deliveries, which made it popular during the COVID-19 pandemic when people were confined to their homes. However, demand of used cars has cooled following an improved availability of new cars and as people look for alternative means to commute in an attempt to trim expenses with a higher interest rates. Carvana posted a fourth-quarter net loss of $806 million, or $7.61 per class A share, up from a loss of $89 million, or $1.02 per class A share, a year earlier.

☆ Fund manager names two U.S. stocks he thinks might not survive 2023
▼ + stars: | 2023-01-16 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

Businesses that relied on "free and infinite capital" are now facing a harsh reality, according to fund manager Trent Masters, and could even go bankrupt. Carvana One company that falls into this category is online car dealer Carvana , Masters told CNBC Pro Talks . Affirm Masters also said that some buy now pay later (BNPL) companies, like consumer credit lender Affirm, were coming under strain in the current market conditions. Shares of Affirm Holdings have fallen by more than 80% over the past year to $12 a share. AFRM 1Y line Shares of credit lender Affirm have fallen by more than 80% in the past 12 month

☆ As latest short squeeze unfolds on Wall Street, here's what that means and who could be next
▼ + stars: | 2023-01-12 | by ( Samantha Subin | ) www.cnbc.com time to read: +4 min

Traders are once again piling into stocks with high levels of short interest, and several companies could prove the next targets of the latest frenzy unfolding on Wall Street. As another short squeeze unfolds now on Wall Street, CNBC Pro used FactSet data to search for the next potential candidates. Silvergate's short interest as a percent of float recently stood at nearly 61%, the highest among all the stocks included in the screen. Popular online used car retailer Carvana has 58% of shares sold short. Beyond Meat and Weber are two other potential short squeeze contenders that sold off sharply in 2022, with about 40% and 32.4% of their respective shares sold short.

☆ 2022 was the year the Overconfidence Man fell back to earth
▼ + stars: | 2022-12-29 | by ( Maureen Tkacik | ) www.businessinsider.com time to read: +22 min

Naturally, Elon Musk, the platonic ideal of the peculiar self-aggrandizing, self-parodying personality type that thrived during the Trump years and peaked during the pandemic, tops this list. By 2022, the media had pronounced him variously the next Warren Buffett, J.P. Morgan and Charles Koch. "bye bye @trussliz Congrats to lettuce", tweeted Putin's one-time stand-in Dmitry Medvedev, to which Elon Musk could not resist replying, "pretty good troll tbh." Elon Musk speaks at the 2020 Satellite Conference and Exhibition in March 2020. Elon MuskIt's weird to recall now that Elon Musk once seemed like, graded on the billionaire curve anyway, a net positive for a cursed American society.

☆ How disrupting the used car market caused Carvana to succeed and stumble
▼ + stars: | 2022-12-20 | by ( Magdalena Petrova | ) www.cnbc.com time to read: +1 min

Carvana is a used car retailer that lets customers find, tour, buy and finance vehicles completely online. Trade publication Automotive News tracks companies by volume of vehicles sold every year. The latest data shows that in 2021 Carvana sold over 425,000 vehicles, giving the company its number two spot after used car behemoth CarMax . But the sky-high demand that made Carvana a Wall Street star would also bring it down. Watch the video to learn how Carvana went from Wall Street darling to what some analysts are saying could be the edge of bankruptcy, and to see what the future may hold for the used car retailer.

☆ The rise and fall of Carvana
▼ + stars: | 2022-12-20 | by ( Magdalena Petrova | Jeniece Pettitt | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe rise and fall of CarvanaThroughout the coronavirus pandemic, several factors propelled Carvana's business forward. At its peak in August 2021, the online used car retailer reached a market capitalization of around $60 billion. By the end of the year, it was ranked just behind CarMax as having sold the largest number of used vehicles. Since then, Carvana has struggled. The company's future now seems in question, as it faces ever increasing competition and an uncertain economic outlook plagues consumers.

☆ Citi says Carvana could perform well in 'more normalized' environment, but near-term headwinds remain
▼ + stars: | 2022-12-13 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Carvana could stand to regain some of its lost share value despite current headwinds and bankruptcy fears, according to Citi. He set a price target of $5.50, which reflects a 11.1% upside over Monday's closing price. Josey said Carvana currently accounts for just over 1% of used car sales, but the company would be positioned to generate share gains in a typical used car market. But in the near-term, he said "the combination of higher interest rates, declining used vehicle prices (after rising significantly from 2020 – present), limited new vehicle supply, and a weaker economic backdrop have created a challenging operating environment." Going forward, Josey said he will be watching the used car retailer's relationship with Ally, which is its primary funding partner, and Adesa, a used car auction it acquired.

☆ As Carvana crashes hard, used car dealers — not buyers — stand to win big
▼ + stars: | 2022-12-09 | by ( Alexa St. John | ) www.businessinsider.com time to read: +3 min

Used car retailer Carvana has come crashing down after a strong two years. The upstart used car retailer is fading so fast, many industry players are wondering what happens if it goes bust. When global supply chain constraints hampered new production, shoppers pushed used car prices to record highs and Carvana's peak valuation to more than $60 billion. What its mean for car buyers — and legacy dealersCarvana vehicle buyers should feel relatively protected. A bankruptcy, however, could leave car dealers pleased, as Carvana was able to undercut its brick-and-mortar competition with vehicle prices.

☆ It turns out Taylor Swift has better due diligence than half of Silicon Valley
▼ + stars: | 2022-12-08 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

Taylor Swift in the "Bejeweled" music video. Taylor Swift has better due diligence than half of Silicon ValleyIt's SBF. Just when you thought the FTX debacle couldn't get any weirder, let's add Taylor Swift into the mix. What Taylor Swift album does Sam Bankman-Fried most identify with? Perhaps the most pressing question, however, as pointed out by senior finance editor Michelle Abrego, is this: How does Taylor Swift have better due diligence practices than half of Silicon Valley?

☆ Here’s how to invest in the stock market next year, according to Bank of America
▼ + stars: | 2022-12-08 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

"Once rate hikes bite labor markets, the Fed will pause, and investors should deploy the $1.9 trillion," Bank of America strategists said. With a new normal of elevated inflation, BofA expects equal-weighted stock market indices to perform better than market-cap-weighted ones. How will you adjust your stock market investing strategy for the new year as recession signals heat up? The legendary investor estimated that policymakers may push the benchmark rate as high as 5.5%, which he warned could weigh especially heavily on the stock market. The stock market's recent run is due to fail even as investors are anticipating a Fed pivot ahead.

☆ Used-car retailer Carvana slumps after Wedbush says bankruptcy risk rising
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +2 min

Brokerage Wedbush also downgraded its rating on the stock to 'underperform' from 'neutral,' sending Carvana's shares to a record low. "Many (Carvana) bonds have been trading at about 50 cents on the dollar, indicating investors see a high probability of default," said analyst Seth Basham, in a note titled 'Bankruptcy risk rising.' Carvana has suffered from waning used-car demand and high costs, forcing it to undertake job cuts to rein in expenses. As a result, its stock has fallen nearly 100% this year, hitting record lows in the process. Reporting by Priyamvada C, Medha Singh, Sruthi Shankar in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

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