Carvana (CVNA)

Carvana: The Future of Car Buying?

Car buying is one of the most stressful experiences that we go through in life. It involves going to a dealership, haggling with salespeople, and dealing with the financial department. It's no wonder that people dread the experience. However, there is hope on the horizon. Carvana is a company that is changing the way people buy cars. They are an online platform that allows people to buy and sell cars without the hassle of going to a dealership. In this article, we will take a closer look at Carvana, including its stock and financial information.

What is Carvana?

Carvana is an online platform that allows customers to buy and sell cars. It was founded in 2012 and has been growing ever since. The company's goal is to make the car buying experience as easy and stress-free as possible. They have a wide variety of cars to choose from, and they even offer financing options. The company is headquartered in Tempe, Arizona, and they currently operate in over 270 markets.

How does Carvana work?

The Carvana process is simple. Customers can browse through the company's inventory online and select the car they want. Once they have made a selection, they can schedule a delivery or pick up the car from one of the company's "vending machines." Yes, you read that correctly. Carvana has built vending machines for cars. These are large towers that store cars and dispense them to customers. It's a unique and fun way to pick up your new car.

The vending machines are not the only thing that makes Carvana unique. The company also offers a 7-day test drive. Customers can drive the car for seven days and decide if they want to keep it. If they don't like it, they can return it for a full refund.

Stock and Financial Information

Now, let's take a closer look at Carvana's stock and financial information. The company went public in 2017, and its stock has been on the rise ever since. In 2020, Carvana's stock price increased by over 400%. The company's market cap is currently over $60 billion.

Carvana's revenue has also been growing steadily. In 2019, the company generated $3.9 billion in revenue, and in 2020, that number increased to $5.6 billion. The company's net loss has been decreasing, which is a positive sign. In 2019, Carvana's net loss was $365 million, and in 2020, it decreased to $215 million.

The company's financials are impressive, but there are some concerns. Carvana's valuation is high, which means that the stock price could be overvalued. The company is also not profitable yet, and it's unclear when they will start generating a profit.

Below are their reported income statements for the last few years. Again, impressive growth in revenue, but the losses continue.

Critical yet Hopeful

While Carvana has been successful, there are some concerns about the company. The high valuation and lack of profitability are valid concerns. However, I am hopeful about the future of Carvana. The company is constantly innovating and finding new ways to make the car buying experience better. The vending machines are just one example of this.

Carvana's 7-day test drive is another innovation that sets the company apart from traditional car dealerships. This feature allows customers to try out the car before they commit to buying it. It's a great way to reduce the stress and anxiety that comes with buying a car.

Another reason to be hopeful about Carvana's future is the demand for their services. People are looking for ways to make their lives easier, and Carvana offers a solution to the stressful car buying experience. As more people become aware of the company, I believe that demand will continue to increase.

Stock Chart

The bear market has not been kind to Carvana. No reverse splits in there either.

Could it become a high flier again and go back to its all-time highs? Well, I suppose it could, but they'd probably have to start turning a profit. That doesn't mean that you can't make some money trading this thing. As I write this, the latest short borrow availability just came in at zero. Yes, no shares left to short. That ought to make things interesting.