# Carvana



## sags (May 15, 2010)

Once called the Amazon of used cars, Carvana has completely collapsed down over 40% today and 98% since their high of nearly $400 a share.

The stock traded at $3 with a downgrade to $1 and bankruptcy.

How does this happen in a red hot used car market ?



https://finance.yahoo.com/amphtml/news/carvana-stock-tanks-december-7-154119414.html


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## Covariance (Oct 20, 2020)

Too much debt.


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## Gumball (Dec 22, 2011)

they bought used cars at the height of covid (no new vehicles being built, so the used car prices were inflated) with higher rates cooling spending and OEMs being able to ramp up production - this is a huge blow to used car valuations, so Id guess theyre underwater on a lot of their inventory and now have to sell it off at a loss...this is going to hurt


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## Brainer (Oct 8, 2015)

I'm pretty sure, based on what I've heard, that this stock is eventually going to zero.


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