Carvana Stock Forecast: Losses deepen, stock price nose dives, what is the road ahead?

Carvana Stock Forecast: Losses deepen, stock price nose dives, what is the road ahead?

Carvana Stock Forecast: In the last year 3rd quarter it had a net loss of $68 million which has multiplied by 7.5x bringing the net loss to $508 million.

Carvana Stock Forecast: Latest Price

Carvana Stock Forecast: Performance Chart

Stock Name5 Days1 Month6 Months1 Year
CVNA-42.2%-58.32%-79.31%-97.36%

Carvana Stock Forecast: Latest Tweet

Carvana Stock Forecast: Why is Carvana stock going down?

After the quarter 3 results, within the span of 3-4 days the price was slashed for about more than 50%. On 1st November, it was trading roughly around 15$ and now has plunged to $7.36. Morgan Stanley reported that it can further tumble down to $1. Reasons for dismemberment in the stock price are given below.

  • Bad performance in 3rd quarterly report – The company reported a slight dip in net sales of $3.48 billion whereas net sales for the same quarters in the previous year $3.386billion. In the last year 3rd quarters it had a net loss of $68 million which has multiplied by 7.47 folds bringing the net loss to $508 million.
  • Lack in demand for its products – Given that there are unfavorable macro economic factors like recession and inflation in the market, CVNA has received the worse end of it. Also, Volatile interest rates have pushed retail customer’s monthly payments by 160% from the pre-pandemic levels. In turn, leading to a retail sales drop of 8.4% i.e. from 119,494 units to 102,570 units. Piled up inventory, drop in expected sales price, depreciation on assets and a pressure on cash and cash equivalents is making analysts question CVNA’s favorable future.

Also Read: NIO Stock Forecast 2022

Carvana Stock Forecast 2022

Price TargetHighLow
CNN$220$16
NASDAQ$220$35
Barchart$225$35

The Relative strength index gave a score of 27 to this stock indicating that the stock is oversold. And trend analysis shows a downward trajectory. Carvana is expected to fall even further after in short span of time. It is in the top 38% of this industry. The company has not been profitable in a capital-intensive business.

Carvana Stock Forecast: Latest Video

YouTube video

Carvana Stock Forecast: Quarter 3 Results

  • Total revenue was reduced by 3% from $3.440 billion to $3.386 billion on Y-O-Y basis; Total revenue in 2nd Quarter of this year was $3.884.
  • In 3rd quarter it sold 102,570 units which is a steep decline from 117,564 units on Q-O-Q basis.
  • In Q3 it earned a total gross profit of $359 million which has declined from Q2 $396 million.
  • In Q3 the SG&A expense reduced to $604 million from Q2 SG&A expenses of $694 million.

Carvana Stock Forecast: Technical Analysis

Carvana Stock Forecast

Nandini Panchal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Subhash

Subhash

Subhash, Founder of Crowdwisdom360 is an MBA and a Trained Financial Advisor with an extensive background in Forecasting in Financial Services and Politics. He has appeared many times on National TV and has written for a variety of magazines on Wealth Management and Election Strategy.