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

Alex Snyder

President Skroob
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2020 was a year that many business owners and entrepreneurs would like to forget, both in terms of how it impacted their professional and personal lives. Many businesses were forced to close their doors and others tried to hold on as long as possible until they couldn't continue. Covid-19 also encouraged businesses to shift to a completely digital landscape. Retail stores were forced to sell online-only, and restaurants had to pivot to online ordering and delivery models to survive. While we are now technically in a post-pandemic environment, stronger variants are now showing signs of a possible similar situation. Whether we experience another shutdown across the world is uncertain, but one thing is very clear: Marketing has changed forever. If this information is interesting read more.
 

Jeff Kershner

Founder
May 1, 2005
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More BREAKING CARVANA NEWS!!


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.

Post in the forums:


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joe.pistell

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or, Carvana's $8.00 stock price would have to increase more than 4,300% to reach it's high price of $375-ish a little over a year ago.

Carvana today is valued at 1.5billion dollars. Carvana at its peak was valued at $31billion*, all of GM is valued at $50bill.

While I was at CARS.com, its market valuation was about $1-2billion. I vividly recall thinking Carvana should buy Cars.com (or cargurus) and Carvana could use Cars.com's GIANT army of sales reps to roll out Carvana's Dealer Partner program. What a giant miss for Carvana.

*https://ycharts.com/companies/CVNA/market_cap
 
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AutoAlex

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While I consider myself a savvy investor, I am more of an index fund kinda guy. I am not sure if a stock can hit $0 prior to bankruptcy, but I see bankruptcy & $0 per share in the future.

Speaking of, I wonder what will happen to Adesa? Will Kar Global buy it back for pennies on the dollar?