Despite the fact that there has been talk about the possibility of a short squeeze involving Carvana, the company was one of the top gainers on the Fortune 500 list, placing third, with Walmart (NYSE: WMT) claiming first place overall. The Arizona-based online auto retailer reported revenue of $3.88 billion, a 16.2% year-on-year increase, missing estimates by $110 million. Similarly, earnings per share (EPS) were -$2.35, missing by $0.47. Furthermore, gross profit per unit (GPU) fell by $1,752 from the prior year’s quarter to now $3,368, with the firm expecting roughly less than $4,000 GPU and positive earnings in the entire year of 2023. Ernie Garcia, founder, and CEO outlined that his company is making significant strides and improvements across all key metrics. He added:
CVNA chart and analysis
In the last month, CVNA has been trading in the $19.45 to $48.49 range, while the short-term trend is positive for the stock despite being near the lower end of its 52-week range. With the recent spike in the price, the support line has moved to $44.01, at the same time the resistance line is at $48.49. TipRanks analysts have a moderate buy’ rating consensus, seeing the average price in the next 12 months reaching $51.76, 10.17% higher than the current trading price of $46.98. If the short-squeeze occurs, more volatility can be expected in the price, with it shooting much higher than what was evidenced in the previous trading session. It will be interesting to track the data on the losses caused to short sellers if the trend continues. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
