Retail sentiment for Carvana (CVNA) remained 'bearish' late Wednesday despite the online used-car retailer's strong earnings ...

At the company's current share price of $67, Carvana trades at a market cap of $9.7 billion - nearly five times the $2 billion valuation that Carvana notched two years ago in its IPO.

Carvana has stated that their financial goals are to achieve 8%-13.5% EBITDA at some point in the future. I would note that these same goals indicate a desire to break even (Net Loss Margin zero ...

The adjustment in the investment firm's outlook is attributed to valuation concerns rather than the impending fourth-quarter results for 2023, which are due to be reported on Thursday, February 22nd.

In response, CVNA is down 4.3% to trade at $127.20. Carvana stock has already shed 42.6% this year, with overhead pressure at the 60-day moving average keeping a lid on its late-March rally attempt.

Gupta cut his rating to underweight, after being at neutral for the past eight months. In August 2022, he had downgraded the stock to underweight citing similar valuation concerns.

Once fully scaled, it could help Carvana boost its annual reconditioning capacity to 3 million units — more than double today’s level. If there’s one concern, it’s the balance sheet.

After a rough Q4, Carvana's outlook for 2023 isn't promising, and liquidity issues loom large. The downsides could be more than priced into the discounted valuation. Even after a big year-to-date ...

Carvana continues to sell vehicles in Pennsylvania, and a spokeswoman for the retailer told Automotive News that the company is working to resolve the department's concerns.