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☆ Carvana shares surge on plans to cut debt load
▼ + stars: | 2023-07-19 | by ( Nathan Gomes | ) www.reuters.com time to read: +4 min

Companies Carvana Co FollowJuly 19 (Reuters) - Carvana (CVNA.N) shares soared as much as 43% on Wednesday after the troubled used-car retailer struck a deal with most of its term bondholders to cut its outstanding debt by more than $1 billion. Carvana had long-term debt of $6.54 billion as of June end, relatively unchanged from a year earlier. But Carvana has been struggling to sell cars acquired at elevated prices as buyers, hit by inflation and worried about a recession, cut spending. Carvana shares have lost 87% of their value in the past two years. In premarket trading on Wednesday, Carvana's shares rose as high as $57, in what traders said looked like a short squeeze.

Persons: John Zito, Carvana, Ernest Garcia's, Carvana's, Ortex, they're, Dennis Dick, Nathan Gomes, Bansari Mayur, Shivansh, Raechel, Medha Singh, Sriraj Kalluvila, Saumyadeb Chakrabarty, Anil D'Silva Organizations: Triple D, Carvana, Thomson Locations: Bengaluru

Big U.S. lenders rallied on Tuesday after they said higher interest rates had helped boost profits in the second quarter. The S&P 500 banking index (.SPXBK) has fallen 3.4% this year in the aftermath of a banking crisis that took down three lenders and pummeled the regional banking sector. The benchmark S&P 500 index (.SPX) has notched an 18.6% gain in the same period. Among other lenders, Citizens Financial(CFG.N) and M&T Bank(MTB.N) beat Wall Street estimates for second-quarter profit, benefiting from the U.S. Federal Reserve's rapid rate hikes. ET, Dow e-minis were up 7 points, or 0.02%, S&P 500 e-minis remained unchanged, and Nasdaq 100 e-minis were up 22.5 points, or 0.14%.

Persons: Goldman Sachs, Goldman, Dennis Dick, noteholders, Bansari Mayur Kamdar, Johann M, Saumyadeb Chakrabarty, Maju Samuel Organizations: T Bank, Dow, Nasdaq, Street, Big, Triple D, Citizens, U.S, U.S . Federal, Dow e, Credit Suisse, Netflix, IBM, Microsoft, Verizon, Elevance, VMware, Federal Reserve, Thomson Locations: Big U.S, U.S ., Bengaluru

☆ Carvana enters deal to cut debt by $1.2 bln, shares surge
▼ + stars: | 2023-07-19 | by ( ) www.reuters.com time to read: +2 min

"Apollo is pleased to support this debt exchange agreement, which stands to significantly strengthen Carvana's financial position while providing creditors with new first lien debt," John Zito, Apollo's Deputy CIO of credit, said in a statement. But the company has been struggling to sell cars acquired at elevated prices as buyers hit by inflation and worried about a recession cut spending. Carvana's shares have lost 87% of its value in the past two years. The company also posted a core profit of $155 million, compared to a loss of $216 million in the year-ago quarter. Reporting by Nathan Gomes in Bengaluru; Editing by Shweta Agarwal and Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

Persons: John Zito, Carvana's, Nathan Gomes, Shweta Agarwal, Sriraj Organizations: Bloomberg News, Apollo Global Management, Pacific Investment Management, Thomson Locations: Bengaluru

☆ Carvana stock surges 30% after it reaches a massive debt reduction deal
▼ + stars: | 2023-07-19 | by ( Jordan Valinsky | ) edition.cnn.com time to read: +1 min

The Phoenix-based company will reduce its outstanding debt by more than $1.2 billion, according to a release. Carvana has been struggling financially in recent months because of declining used car prices. A relatively new player in the used car field, it has lost money most quarters since it went public in 2017 as it aimed for sales growth rather than short-term profitability. Carvana launched 10 years ago with a plan to disrupt the used car market, offering both online car shopping and trade-ins as well as distinctive car vending machines. Carvana (CVNA) shares are up now a whopping 1,000% for the year.

Persons: Carvana, ”, Mark Jenkins Organizations: New, New York CNN Locations: New York, maturities

☆ 3-Stock Lunch: LEN, POOL & CVNA
▼ + stars: | 2023-07-14 | by ( ) 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 Email3-Stock Lunch: LEN, POOL & CVNADavid Wagner, Aptus Capital Advisors portfolio manager, joins ‘Power Lunch’ to discuss three stocks: Lennar, POOL and Carvana.

Persons: CVNA David Wagner Organizations: Aptus

Against this backdrop, CNBC Pro used FactSet data to screen for stocks most vulnerable to a short squeeze. A short squeeze occurs once a shorted stock climbs higher, forcing investors who have short bets on shares to cover their positions. Novavax , meanwhile, has about 42% short interest from investors. Overall, short interest in the name increased 8.7% between June 15 and June 30. See below for the full rundown of potential short squeeze targets.

Persons: there's, Novavax Organizations: Nasdaq, Dow Jones, JPMorgan, CNBC Pro, New York Stock Exchange, Sunnova Energy Locations: Canada

☆ Here are Thursday's biggest analyst calls: Tesla, Spotify, Netflix, Chevron, Carvana, Coinbase & more
▼ + stars: | 2023-07-13 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Here are Thursday's biggest calls on Wall Street: TD Cowen upgrades Meta to outperform from market perform TD Cowen said it sees further share gains ahead for Meta. TD Cowen reiterates Amazon as outperform TD said it's bullish heading into Amazon earnings later this month. Deutsche Bank reiterates Microsoft as buy Deutsche said the stock is "set up nicely" heading into earnings later this month. " Bank of America reiterates Tesla as neutral Bank of America said it's standing by its neutral rating heading into earnings next week. BMO reiterates Chevron as outperform BMO said in a note on Thursday that it likes the oil and gas giant's capital return.

Persons: Cowen, TD Cowen, it's, Stifel, Coinbase, JPMorgan downgrades, Morgan Stanley, Cboe, Morgan Stanley downgrades SoFi, Tesla, Domino's, Robert Iger, Oppenheimer Organizations: Meta, Energy Fuels, Clean Energy Fuels Corp, Barclays, JPMorgan, Spotify, Deutsche Bank, Microsoft, Deutsche, BMO, Netflix, " Bank of America, of America, Suisse, Credit Suisse, Bank of America, Disney, ESPN, Chevron Locations: China

☆ JPMorgan says Carvana can fall more than 70% after skyrocketing this year
▼ + stars: | 2023-07-13 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

It's time to pull back on Carvana after its shares shot up this year, JPMorgan said. Gupta's $10 price target means he thinks the stock could fall 74.3%. JPMorgan raised its non-GAAP EBITDA and gross revenue per unit expectations for the 2023 through 2025 fiscal years. Last month, JPMorgan said the company should still consider an equity raise to further reduce concerns. The issue with Carvana's story, according to Gupta: Investors are anticipating a stronger return to growth and leverage in 2024 than will actually take place.

Persons: Rajat Gupta, Gupta, Gross, — CNBC's Michael Bloom Organizations: JPMorgan, Gupta Locations: Carvana

☆ CarMax beats profit estimates powered by cost-cuts; shares jump
▼ + stars: | 2023-06-23 | by ( ) www.reuters.com time to read: +1 min

Shares of the pre-owned car retailer were up about 8% before the bell. Auto retailer AutoNation (AN.N), in April, missed Wall Street estimates for first-quarter revenue as higher new vehicle and after-sales demand was offset by weakness in used vehicle and customer financial service businesses. On Friday, CarMax reported an adjusted profit of $1.16 per share, compared with average analysts' expectation of 79 cents per share, as per Refinitiv data. Net revenue came in at $7.69 billion, compared with analysts' estimates of $7.53 billion. Reporting by Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

Persons: Bill Nash, CarMax, Kannaki Deka, Nathan Gomes, Shailesh Organizations: CarMax, Auto, Thomson Locations: Bengaluru

REUTERS/Dado Ruvic/Illustration/File PhotoJune 16 (Reuters) - U.S. electric-vehicle startups were set for massive weekly gains on Friday after a searing rally in their shares over the past few sessions nearly doubled the value of companies such as Nikola (NKLA.O). Other big gainers such as Nikola and Workhorse Group (WKHS.O) have short interests of 21.7% and 23.9%, respectively. Reuters GraphicsUsed-car retailer Carvana (CVNA.N), another highly shorted stock, has also posted strong gains that have pushed up its value by nearly $1.38 billion this week. "Carvana probably kick-started this, it is up more than 100% in a couple of weeks on a short squeeze. Nikola and Lordstown have drawn a flurry of bullish options activity in recent days as traders place bets on further gains.

Persons: Dado Ruvic, Nikola, Dennis Dick, Carvana, Tesla, Lordstown, Aditya Soni, Akash Sriram, Saqib Iqbal Ahmed, Shounak Dasgupta Organizations: REUTERS, Lordstown, S3 Partners, Reuters, Triple, EV, U.S, Nasdaq, Thomson Locations: Morgan, Bengaluru, New York

☆ Electric-vehicle startups set to extend blistering rally
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Dado Ruvic/Illustration/File PhotoJune 16 (Reuters) - Electric-vehicle startups from Nikola (NKLA.O) to Lordstown Motors (RIDE.O) were set on Friday to extend a blistering rally in their shares that has put the cash-strapped companies on track for hefty weekly gains. For instance Nikola, which has more than doubled in value this week, has a short interest of 15.7%, according to Refinitiv. The EV startups, meanwhile, have added over $500 million to their collective market value. Nikola shares were 20% higher before the bell on Friday at $1.65, on course to stay above the minimum level for the third straight session. Still, many challenges remain for the EV startups, evidenced by the year-to-date stock price declines of 35% and 75% seen at Nikola and Lordstown, respectively.

Persons: Dado Ruvic, Nikola, Lordstown, Foxconn, Aditya Soni, Akash Sriram, Shounak Dasgupta Organizations: REUTERS, Nikola, Lordstown Motors, EV, U.S, Faraday, Nasdaq, Thomson Locations: Morgan, Bengaluru

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

☆ Here are Tuesday's biggest analyst calls: Netflix, Carvana, Walmart, Western Alliance, Deere & more
▼ + stars: | 2023-05-16 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Here are Tuesday's biggest calls on Wall Street: JPMorgan reiterates Netflix as overweight JPMorgan said paid password sharing should be a financial tailwind for Netflix. Mizuho reiterates SoFi as buy Mizuho said it's standing by shares of SoFi. Citi reiterates Deere as buy Citi said it's standing by its buy rating on shares of Deere. Citi upgrades Williams Companies to buy from neutral Citi said the petroleum stock is oversold. Citi reiterates FedEx as buy Citi said it's standing by its buy rating FedEx shares.

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.

The Labor Department's report showed non-farm payrolls increased by 253,000 last month, higher than economists' expectations of 180,000. "This is a strong report and shows that the labor market is resilient. "It's been a tough week for the stock market, the regional banking problems have raised the fear factor, but Apple earnings came in strong. The S&P 500 has gained nearly 6% so far this year, while the S&P 500 Banks index (.SPXBK) and KBW Regional Banking index (.KRX) have lost 17% and 31%, respectively. ET, Dow e-minis were up 222 points, or 0.67%, S&P 500 e-minis were up 33.5 points, or 0.82%, and Nasdaq 100 e-minis were up 87 points, or 0.67%.

☆ Here are Friday's biggest analyst calls: Apple, Coinbase, Western Alliance, Playboy, SolarEdge & more
▼ + stars: | 2023-05-05 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Morgan Stanley reiterates Apple as overweight Morgan Stanley said Apple is "delivering under pressure" after its earnings report on Thursday. Guggenheim upgrades Portillo's to buy from neutral Guggenheim said it sees multiple expansion for the restaurant chain. Goldman Sachs downgrades Atlassian to neutral from buy Goldman said the company's "cloud transition [is] likely taking longer than expected." UBS upgrades Shopify to neutral from sell UBS said in its upgrade of Shopify that it sees revenue upside. Jefferies initiates Playboy Group as buy Jefferies said it sees "significant upside" for the adult themed global media and lifestyle company.

☆ 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.

☆ A solid start to earnings season will be put to the test in the week ahead
▼ + stars: | 2023-04-29 | by ( Zev Fima | ) www.cnbc.com time to read: +14 min

The biggest week of this earnings season showed us that things aren't as bad as many feared. The week ahead of earnings, including several more Club names, should tell us more. The results are always important, but it's the guidance and management commentary we will really hone in on to better understand the path ahead. In Amazon's case, a solid first quarter for its AWS cloud business was overshadowed by management seeing a material slowdown in April. ET: Nonfarm Payrolls Looking back It was the biggest week of this earnings season for the Club as several of our mega-cap holdings and industry bellwethers reported results.

ET (1800 GMT), with investors keenly awaiting Chair Jerome Powell's conference at 2:30 p.m. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 16, 2023. REUTERS/Brendan McDermidHowever, a scramble by troubled regional U.S. lender First Republic Bank (FRC.N) to secure a capital infusion has kept alive some worries about the banking sector. Declining issues outnumbered advancers by a 1.13-to-1 ratio on the NYSE and by a 1.44-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and six new lows, while the Nasdaq recorded 27 new highs and 75 new lows.

☆ GameStop's surprise profit triggers short squeeze, meme stocks rally
▼ + stars: | 2023-03-22 | by ( Medha Singh | ) www.reuters.com time to read: +3 min

AMC and GameStop were at the heart of a meme-stock frenzy in 2021 driven by small investors coordinating on social media. Among other highly shorted meme stocks, Koss Corp (KOSS.O) climbed 9.5%, Bed Bath & Beyond (BBBY.O) reversed course to slip 1.3%, while the Roundhill MEME ETF (MEME.P) rose 4.2%. "Luckily, this go around is not due to meme investors, but an actual tangible fundamental event," said David Wagner, portfolio manager at Aptus Capital Advisors. SOURING SHORT BETSWhen there is a rush of demand from short sellers looking to exit their bearish bets amid a rise in a stock's price, it pushes prices even higher, resulting in a short squeeze. Another favorite among retail investors - Carvana Co (CVNA.N) - jumped 22% after the used-car retailer said it expects a smaller core loss in the current quarter.

The U.S. central bank's two-day policy meeting will end at 2 p.m. ET to gauge the central bank’s rate-hike trajectory. U.S. Treasury yields rose, with the yield on the two-year note, which best reflects interest rate expectations, last at 4.212%. Declining issues outnumbered advancers by a 1.56-to-1 ratio on the NYSE a 1.75-to-1 ratio on the Nasdaq. The S&P index recorded no new 52-week high and four new lows, while the Nasdaq recorded 13 new highs and 34 new lows.

☆ Used-car retailer Carvana expects smaller core loss, shares jump
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +1 min

Companies Carvana Co FollowMarch 22 (Reuters) - Carvana Co (CVNA.N) said on Wednesday it expects a smaller core loss in the current quarter due to a raft of cost-cut measures it implemented amid falling used-car sales, sending its shares up nearly 28% before the bell. Carvana expects first-quarter core loss between $50 million and $100 million, down from a core loss of $348 million a year earlier. The used-car retailer, known for its automated car vending machines, allows users to buy cars online and offers home deliveries, which made it popular during the COVID-19 pandemic when people were confined to their homes. The offer would be for a principal amount of up to $1 billion in notes, with a condition that at least $500 million existing notes be validly tendered. Reporting by Aishwarya Nair in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ 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.

☆ 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.

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