PR & News Make It or Break It for Carvana??

[Jeff Kershner]

Why Carvana Stock Hit the Brakes Today

Shares of the online car-buying company Carvana were crashing today after a Wells Fargo analyst cut the company's price target, just one day after a Wedbush analyst downgraded the stock and cut his price target for its shares.

Making matters worse for the company is the fact that Carvana has been facing legal issues in some states in response to how it handled the transfer of car ownership to some of its customers.

As a result, the automotive stock was down 18% today as of 2:45 p.m. ET.

Yesterday, Wedbush analyst Seth Basham cut his price target for Carvana's stock to $15, down from $50, and downgraded the stock to neutral from outperform.

"the company is burning through its cash, and its current cost structure will make it difficult to reach profitability,"

The analyst also believes that the number of vehicle units sold in Carvana's third quarter (which will be reported on Nov. 3) will fall below analysts' expectations.

Read more here:

Why Carvana Stock Hit the Brakes Today | The Motley Fool

Negative comments from two analysts in as many days sent the stock tumbling.

www.fool.com

 

[Jeff Kershner]

We've been watching and commenting on this for years now!!

BREAKING news! Carvana & Vroom is bleeding cash. Is Ecommerce in auto DOA?

Based on Vroom's & Carvana's news, Ecommerce in auto retail maybe DOA. :shakehd::rip: Yesterday, @Alexander Lau finds: Used car site Vroom lays off staff, 25%-50% says source, as it halts Dallas and Indiana operations...

forum.dealerrefresh.com

 

[john.quinn]

@Alex Snyder... will there ever be a better way than the horse trade?

 

[Alex Snyder]

@Alex Snyder... will there ever be a better way than the horse trade?

Hopefully the pain the OEMs feel in learning that (again) won't be too painful on the rest of us.

 

[john.quinn]

Hopefully the pain the OEMs feel in learning that (again) won't be too painful on the rest of us.

The OEM's will keep experimenting: Saturn/One Price, Scion, all the whiz-bang Fixed, CRM and Data/Marketing programs.

I've come to welcome that -- keeps us on our toes, for one thing. But there's something more important...

As these new approaches/ideas/processes/technologies come and go, they reinforce THE #1 Commandment in all of automotive:

Thouest who takes care of thy customer best, wins.

Translated to the technology sector: those who build the bridges between the dealer and the consumer have staying power. Efforts to replace or become that dealer? Well... like I said -- they come and they go.

 

[Jeff Kershner]

The OEM's will keep experimenting: Saturn/One Price, Scion, all the whiz-bang Fixed, CRM and Data/Marketing programs.

I've come to welcome that -- keeps us on our toes, for one thing. But there's something more important...

As these new approaches/ideas/processes/technologies come and go, they reinforce THE #1 Commandment in all of automotive:

Thouest who takes care of thy customer best, wins.

Translated to the technology sector: those who build the bridges between the dealer and the consumer have staying power. Efforts to replace or become that dealer? Well... like I said -- they come and they go.

Solid words @john.quinn

 

[Rick Buffkin]

 

[BillVaughnKMC]

From $376 per share to $11. Wow.

 

[Viracocha]

It's hideous to watch!

 

[Zhendrix]

Who do you think will acquire the falling knife? eBay?