Last Updated: 15 Sep 2024
Executive Summary
Carvana Co. (CVNA) is an e-commerce platform for buying and selling used cars. The company has a market capitalization of $16.59 billion and is headquartered in Tempe, Arizona. Carvana's financial performance has been mixed in recent quarters, with revenue growth slowing and profitability declining. The latest stock price is $141.90, which is below the analyst target price of $152.06.
Company Overview
Carvana was founded in 2012 and has quickly become one of the largest used car retailers in the United States. The company's platform allows customers to buy and sell cars entirely online. Carvana also offers a variety of services, such as financing, insurance, and delivery.
Fundamental Analysis
Carvana's financial performance has been mixed in recent quarters. Revenue growth has slowed, and profitability has declined. In the most recent quarter, Carvana reported revenue of $11.67 billion, up 14.9% year-over-year. However, the company's net income fell to $24 million, down from $101 million in the prior-year quarter.
Carvana's profitability has been impacted by a number of factors, including rising costs and increased competition. The company has also been investing heavily in its platform and infrastructure. As a result, Carvana's profit margins have declined in recent quarters.
Technical Analysis
Carvana's stock price has been in a downtrend since early 2022. The stock fell to a 52-week low of $25.09 in June 2022. Since then, the stock has rebounded somewhat, but it remains below its 50-day and 200-day moving averages.
The technical indicators suggest that Carvana's stock is in a bearish trend. The stock is below its moving averages, and the relative strength index (RSI) is below 50. This indicates that the stock is oversold and could be due for a correction.
Short Term Outlook
The short-term outlook for Carvana's stock is negative. The stock is in a downtrend, and the technical indicators suggest that the stock could be due for a correction. Investors should be cautious about buying Carvana's stock in the short term.
Long Term Outlook
The long-term outlook for Carvana's stock is more positive. The company has a strong brand and a large market opportunity. Carvana is also investing heavily in its platform and infrastructure. This investment could lead to improved profitability and growth in the long term.
Analyst Recommendations
Analysts are mixed on Carvana's stock. Two analysts have a "Strong Buy" rating on the stock, four analysts have a "Buy" rating, 13 analysts have a "Hold" rating, two analysts have a "Sell" rating, and no analysts have a "Strong Sell" rating. The average analyst target price is $152.06.
