Carvana, Beyond Meat and Wayfair Lead the Charge as Short Sellers Feel the Pressure
June 16, 2023
🌧️Trending News
Carvana ($NYSE:CVNA), Beyond Meat and Wayfair have been leading the charge against short sellers as their stock prices surge despite the pressure. Carvana is a publicly traded technology-enabled e-commerce platform for buying and selling used cars. The company operates an online marketplace that allows consumers to purchase a car online, as well as a network of automated car vending machines for customers to pick up their cars. The company also offers financing, warranties, and trade-in services to customers. The stock price of Carvana has seen a significant increase over the past year due to strong sales growth and the successful launch of their car vending machines. Beyond Meat, which makes plant-based meat substitutes, has also seen its stock price soar due to strong demand for their products. Wayfair, an online home goods retailer, has seen its stock price rise due to increased sales and demand for its products. All three companies have faced pressure from short sellers, who have bet on their stocks declining in value.
However, the stocks of all three companies have continued to see gains despite the pressure from the shorts. This shows that the companies have been able to weather the storm and remain resilient, and investors are taking notice.
Market Price
On Thursday, CARVANA was one of the leading stocks in the market as short sellers felt the pressure. The stock opened at $18.8 and closed at $24.2, soaring by an impressive 56.0% from its last closing price of 15.5. This dramatic increase in the stock price was mainly because of the rising demand for CARVANA’s online auto sales and services. With its innovative approach to a traditional industry, CARVANA is set to continue leading the charge and reaching new heights. Carvana_Beyond_Meat_and_Wayfair_Lead_the_Charge_as_Short_Sellers_Feel_the_Pressure”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Carvana. More…
| Total Revenues | Net Income | Net Margin |
| 12.71k | -1.49k | -5.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carvana. More…
| Operations | Investing | Financing |
| -797 | -2.39k | 3.34k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Carvana. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.65k | 9.97k | -6.22 |
Key Ratios Snapshot
Some of the financial key ratios for Carvana are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 43.7% | – | -16.5% |
| FCF Margin | ROE | ROA |
| -8.8% | 222.2% | -15.1% |
Analysis
GoodWhale recently conducted an analysis of CARVANA’s financials. According to the Star Chart, CARVANA is rated strong in growth, medium in profitability and weak in asset and dividend. Based on our health score of 2/10, CARVANA is found to be less likely to pay off debt and fund future operations. Based on this analysis, we classified CARVANA as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This type of company may be attractive to investors who are looking for moderate growth but are willing to take on more risk. They may also be interested in the potential upside of CARVANA’s stock price if it can improve its asset, dividend, and profitability scores. Carvana_Beyond_Meat_and_Wayfair_Lead_the_Charge_as_Short_Sellers_Feel_the_Pressure”>More…
Peers
There is fierce competition between Carvana Co and its competitors Vroom Inc, Shift Technologies Inc, and CarMax Inc. All four companies are vying for a share of the online car buying and selling market. Carvana Co has the advantage of being the first mover in the online space and has established a strong brand presence. However, its competitors are not far behind and are quickly catching up. All four companies are investing heavily in marketing and technology to gain an edge over the others. It is likely that the competition between them will intensify in the coming years.
– Vroom Inc ($NASDAQ:VRM)
Vroom Inc is an online used car retailer headquartered in New York City. The company was founded in 2009, and has since grown to become one of the largest online used car retailers in the United States. Vroom offers a wide selection of used cars, trucks, and SUVs, and provides financing, warranty, and delivery options to customers nationwide.
Despite its impressive growth, Vroom has not been profitable, and its Return on Equity (ROE) is negative 112.63%. This is due in part to the high costs associated with acquiring and selling used cars, as well as the need to heavily invest in marketing and customer acquisition.
Vroom’s market cap is 147.78M as of 2022. While this is a sizable number, it is dwarfed by the market caps of some of the largest automakers and retailers in the world. This indicates that there is still room for Vroom to grow, and that investors believe in the company’s long-term prospects.
– Shift Technologies Inc ($NASDAQ:SFT)
Founded in 2013, Shift Technologies Inc is a technology company that provides an online platform for buying and selling used cars. The company has a market cap of $45.76M and a return on equity of 6532.78%. Shift’s platform offers a convenient, transparent and efficient way for customers to buy and sell used cars. The company operates in the United States and Canada.
– CarMax Inc ($NYSE:KMX)
CarMax is the largest retailer of used cars in the United States. The company was founded in 1993 and is headquartered in Richmond, Virginia. CarMax operates over 200 used car dealerships across the country. The company offers a wide variety of makes and models of used cars, trucks, and SUVs. CarMax also offers financing and extended warranties on its vehicles.
CarMax has a market cap of $9.59 billion as of 2022 and a return on equity of 16.04%. The company is a publicly traded company on the New York Stock Exchange (NYSE: KMX). CarMax has been a consistently profitable company since it was founded. The company has grown its revenue and earnings at a double-digit pace over the last decade. CarMax is a well-run company with a strong competitive position in the used car market.
Summary
Investors are expressing optimism in CARVANA‘s future prospects after the company’s stock price rose significantly on the same day as several other heavily shorted stocks such as Beyond Meat and Wayfair. Analysts are pointing to CARVANA’s strong fundamentals and impressive growth potential as key reasons for the stock’s current success. The company is well-positioned to capitalize on the shift towards online retailing, and its commitment to innovation has allowed it to keep pace with the rapidly changing landscape of the automotive industry. With CARVANA’s stock price currently trading at record highs, investors remain bullish on the company’s long-term prospects.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
