https://www.fool.com/investing/2017/06/07/cars-in-vending-machines-carvana-revenue-jumps-120.aspx
These seem like pretty lofty expectations.
I don't disagree.
https://www.fool.com/investing/2017/06/07/cars-in-vending-machines-carvana-revenue-jumps-120.aspx
These seem like pretty lofty expectations.
Continue to pound the table David....
Keep buying Carvana blue sky if you want. Hell, you can even buy their stock if your so sure they'll thrive.
If they survive and thrive you can tell everyone "I told you so." Until then they are losing massive amounts of cash, possible only because of the stupid money they received from investors. I give them two chances. "Slim and None." I put a LOT more weight on growth financed out of profits than growth financed via losses of investor capital. Just because Amazon reversed years of losses doesn't mean Carvana can or will. Amazon is still struggling with margins. Their most recent attempt to trim costs, Amazon Logisitics, has been an utter disaster. Desperation often sets in in a company's effort to satisfy investors and analysts.
CarMax has hit some rocky turf recently. Yes, I recall clearly their early days, when they sent out unschooled and inexperienced buyers to acquire inventory. CarMax mostly operates like a smart independent dealer. For one thing, they don't charge themselves retail for recon like a new car dealer. This gives them options new car dealers haven't kept for themselves. But there is a limit on how far you can go with their sales model. If you check social media you'll find that they are rapidly getting a reputation for high prices. While there is certainly a segment of consumers more interested in the CarMax buying experience than the lowest price, that segment is limited.
CarMax has turned their auctions into a successful profit center, something I highly commend them for. But last I looked, their same store comparison results aren't looking real good. They're "growth" is fueled by opening new stores.
Keep buying Carvana blue sky if you want. Hell, you can even buy their stock if your so sure they'll thrive.
If they survive and thrive you can tell everyone "I told you so." Until then they are losing massive amounts of cash, possible only because of the stupid money they received from investors. I give them two chances. "Slim and None." I put a LOT more weight on growth financed out of profits than growth financed via losses of investor capital. Just because Amazon reversed years of losses doesn't mean Carvana can or will. Amazon is still struggling with margins. Their most recent attempt to trim costs, Amazon Logisitics, has been an utter disaster. Desperation often sets in in a company's effort to satisfy investors and analysts.
CarMax has hit some rocky turf recently. Yes, I recall clearly their early days, when they sent out unschooled and inexperienced buyers to acquire inventory. CarMax mostly operates like a smart independent dealer. For one thing, they don't charge themselves retail for recon like a new car dealer. This gives them options new car dealers haven't kept for themselves. But there is a limit on how far you can go with their sales model. If you check social media you'll find that they are rapidly getting a reputation for high prices. While there is certainly a segment of consumers more interested in the CarMax buying experience than the lowest price, that segment is limited.
CarMax has turned their auctions into a successful profit center, something I highly commend them for. But last I looked, their same store comparison results aren't looking real good. They're "growth" is fueled by opening new stores.
Buying inventory doesn't add to losses, that goes on the balance sheet and affects cash flow, not profit/loss.
The amount of wasted venture capital money (per year) is astronomical. More hit the dead pool than survive, but then again most educated VCs know this. They live by the 3/10 ain't bad scenario, or at least the ones I know to do and they are very rich.I'm doing this in my best Bruce Lee voice that I can - Confucius Say... If you gonna lose money...... always best to lose someone else's money!! LOL