Carvana Co (CVNA) Options

BTW, if I had to predict, I'd say this is pulling back to $225. A good short stock, if I shorted stocks. Considering how quickly its falling, some put options look easy here.
Currently $303

You can make decent money if you collect sizable down payments, then go repo the car and repeat.

. Carvana which is up for the year went down today and yesterday and the markets await its earnings report. Like RH, many market observers wonder if Carvana has real value or if it's smoke and mirrors.

"Verdict: Carvana’s operations are legit, but its earnings may involve some “smoke and mirrors” due to questionable accounting practices and transparency issues. Investors should weigh its impressive growth against these risks, critically examining financial reports and market conditions. For further details, review Carvana’s SEC filings at investors.carvana.com or analyst reports on platforms like Nasdaq or TipRanks." Grok.

Well said, I just do not believe their numbers I do not believe anything they have published It’s not remotely close to industry norms

327.00 an still holding it's own, amazing it is. Still on the sidelines after selling out long, from 18.00 average entry. very surprised a forward split has not happened yet. We doubt this is an enron type scandel here or the sec would have halted this already, whatever these executives are doing is working like a charm, is it sustainable is the question

Absolutely, same props to you. This ENRON wannabe scam is going to fall and lots of people are going to get hurt. There is no other outcome, in my opinion. At some point they will have to come clean about the per unit refurbish cost and their per unit gross profit. Both of these figures are so far out of industry norms it’s not explainable.

All of the above in my opinion

I think you made an excellent call. This scam will fall hard

Amazing you said that -
I had just posted on X that CVNA, in 10 years,
will be remembered like Enron or Countrywide Financial.
The tumble will start any day now - go for 6 months, and it'll be under $40 for Christmas.

This is an ENRON level scam as I said last year, in my opinion

This is unsustainable by any metric, in my opinion

The issue here -
CVNA is 92% owned by institutions and companies -
IF CVNA was carrying the same valuation as KMX, it would be at $50 -
It's overdue to "break" - it'll be fun watching the funds trying to get out -
It broke at beginning of Dec '24 (80 point drop in a month, 30%)
and then again in mid Feb '25 (120 point drop in a month, 40%) - less than 3 months -
it's now been over 3 months and the climb has been astonishing - more than doubled.
Something soon will trigger the avalanche - maybe the foolish ROOT deal, that'll never work -
Maybe an SEC investigation - there's rumors already -
It's coming.... The valuation here is beyond insane.
Right now, it's at 343.50
I have July 18th puts - I think it starts the implosion before the 4th of July.

CVNA 1 month

We are gone, sold out. Gl if yur still in this, they are selling more shares, imo something huge may trigger a collapse here, an it could be very epic. May now take a short position soon

Post 901 like the speaker though I forget who made the 901. Caravana sucks and eventually everyone will the the ENRON this really is, in my opinion.

Haha he is the one putting everyone in this mess.

Boom boom boom! $$$$$$$ thank you mr donald trump👍

This house of cards will eventually explode and create many angry BAGHOLDERS

CVNA, not good

$300, $200, $100, $1.00 Zzzzzz

Chart forming the crater pattern

CVNA, new 52 week high

CVNA, new 52 week high, 10 Q due 2/19

CVNA, new 52 week high

CVNA! New 52/week

CVNA - Shorts Squeezed


I'll Alert you of stocks to Buy,
before the Run happens !



____________________________________________


What is a Short Squeeze?
https://investinganswers.com/dictionary/s/short-squeeze

Short Squeeze: Definition, Causes, and Examples
https://www.investopedia.com/terms/s/shortsqueeze.asp

How to Profit From the 'Short Squeeze'
https://investinganswers.com/articles/inside-numbers-profiting-short-squeeze

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Carvana's father-son duo made $11 billion on the stock surge

Shares of Carvana traded as low as $3.62

That decline was
in part
due to skyrocketing interest rates
that kept consumers from purchasing used cars,
which in turn pushed
Carvana to restructure its debt,
amid whispers of a potential bankruptcy.

Shares of Carvana soared
trading at $120, reaching its highest level in years.

That was due to better-than-expected results for its first quarter,
which featured a 16% sales boost; during that quarter

The used-car dealer’s stock has surged
by more than 3,000% since its 2022 record low.

https://qz.com/carvana-q1-2024-11-billion-net-worth-ernie-garcia-1851454050

https://finviz.com/quote.ashx?t=CVNA&ty=c&ta=1&p=m

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I would have even lost the spoon that I eat with.
Maybe one day this will be where it should be.

The market has made little to no sense to me for a few years.

CVNA

ENE II

CVNA

MarketWatch: Carvana gets its first upgrade since Hindenburg short-selling report

Upgrade for Carvana stock comes as Ally Financial renews loan-buying pact

Carvana, the online used-car retailer that last week was the target of a short-selling research report, got its first broker upgrade since then which says the controversy has sparked a buying opportunity.

Brad Erickson, an analyst at RBC Capital Markets, lifted Carvana's rating to outperform from sector perform, not even a week after Hindenburg Research authored a short-selling research report, in large part on worries over its ability to sell auto loans.

Carvana's stock (CVNA) is down 7% in the new year, after a meteoric 365% gain in 2024.

Carvana shares rose 4% in premarket trade.

Erickson lifted his price target to $280 from $270 as well, saying Wall Street underestimates how much Carvana will expand its market share.

He also said Carvana can profitably expand to work with more commercial and fleet buyers. It will be able to deleverage further owing to a resurgence in demand and profitably, the analyst added.

On the controversy on whether Carvana is having trouble selling the loans it originates, Erickson said the private sale of $800 million of loans last year was done on similar terms as in the past, and on Monday Ally Financial (ALLY) renewed its relationship with Carvana.

Terms call for Ally to buy up to $4 billion of loans over the next year.

RBC bullish on Carvana stock as unit upside and TAM drive opportunity

On Tuesday, RBC Capital Markets upgraded Carvana stock from Sector Perform to Outperform, increasing the price target to $280 from $270. The decision follows Carvana's remarkable recovery, with InvestingPro data showing a stunning 303% return over the past year.

The company has achieved a perfect Piotroski Score of 9, indicating exceptional financial strength. RBC Capital analysts now see the recent pullback in Carvana's stock as a buying opportunity.

The upgrade comes with a positive outlook on Carvana's business trajectory. Analysts at RBC Capital believe that Carvana's retail unit sales have the potential to exceed expectations, especially as vehicle supply conditions improve.

Supporting this optimism, InvestingPro data reveals revenue growth of 12.21% in the last twelve months, with a healthy current ratio of 3.25 indicating strong operational liquidity. They also consider the company's Gross Profit per Unit (GPU) to be largely sustainable, countering recent concerns in the market.

Furthermore, RBC Capital's analysts are optimistic about Carvana's prospects in the online car marketplace. They anticipate that the company will continue to show improvements in both margin and balance sheet strength. The analysts expect these factors to contribute to a clearer pathway toward generating real free cash flow (FCF) for Carvana.

The updated price target is based on a 28 times multiple of the firm's projected enterprise value to 2026 EBITDA, and RBC Capital has also increased their estimates for Carvana's 2025 financials. They suggest that Carvana's constrained supply business model, combined with a large and still underpenetrated total addressable market (TAM), could potentially make it an unexpected compounder over time.

RBC Capital also notes risks to their outlook, including the sustainability of GPU levels and the ability to maintain retail volume momentum. While the company trades at elevated multiples with an EV/EBITDA of 28.59, InvestingPro analysis suggests the stock is slightly undervalued at current levels.

n other recent news, Carvana Co (NYSE:CVNA). has secured a notable agreement with Ally Bank and Ally Financial (NYSE:ALLY) Inc., collectively known as the "Ally Parties," to sell up to $4 billion in automotive finance receivables. This arrangement follows an amendment to their existing Master Purchase and Sale Agreement and is expected to provide Carvana with a significant influx of capital.

The online auto retailer also reported record-breaking Q3 earnings, with a 34% year-over-year increase in retail units sold, leading to a 32% revenue surge. Carvana's net income reached $148 million, with an operating income of $337 million and an adjusted EBITDA of $429 million.

RBC Capital Markets reiterated Carvana at Sector Perform, JPMorgan reaffirmed an Overweight rating, and Needham increased its stock price target for Carvana to $330, maintaining a Buy rating on the stock.

In a significant shift, Morgan Stanley (NYSE:MS) moved from an Underweight to an Equal-weight rating for Carvana. These recent developments reflect a strong financial performance and market position for Carvana, despite some concerns raised by analysts.

https://www.investing.com/news/analyst-ratings/rbc-bullish-on-carvana-stock-as-unit-upside-and-tam-drive-opportunity-93CH-3799236

Big wealthy companies don't have uniformly smart employees.

Interesting, all the big names linked to this. JP Morgan, Ally Financial....

Yes, there've been several. But I think Carvana will eventually pay the price.

And the arithmetic where they pay the most for cars, sell them cheapest and make far more than anyone in the business.

BTW, Carvana stock rose today, but Hindenburg short targets often trade perversely like that for a time. See Icahn's company (IEG) as an example.

Yes! The stuff about the loans was very funny. Required annual income: $5,100...

Loved "anyone who can fog a mirror qualifies for their car loans."

They ARE funny...

Car Guys Look at the Carvana Story. Hilarious.

Hindenburg rarely gets short picks wrong. Brilliant and gutsy group of analysts. They think CVNA is rubbish. Read the report for yourselves...

https://hindenburgresearch.com/carvana/

Not “wrong” just timing

Perhaps it's about to speed up. Hindenburg put out a report today:

Carvana: A Father-Son Accounting Grift For The Ages

Published on January 2, 2025

https://hindenburgresearch.com/carvana/

The slow drip to reality

Sold half an bought a mountain! $$$$$!$!!!

CVNA, off the 52 week high

Good day CVNA

CVNA new 52 week high

Yes! Omg we are still holding, huge gains, i mean huge here. GL

Remember when the stock was a couple bucks a few years back BK coming blah blah this one of my great total ROI from the bottom still holding free shares. Always buy the fear and make the big $ Staggering gains and have made some nice hits on options over the last few years.

$CVNA

Oh my, $$$$$$

cvna.........................https://stockcharts.com/h-sc/ui?s=cvna&p=W&b=5&g=0&id=p86431144783