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

Carvana Stock Forecast: Latest Price

Carvana Stock Forecast: Performance Chart

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 1^st 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 3^rd 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 3^rd 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.

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Carvana Stock Forecast 2022

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

Carvana Stock Forecast: Google Trends

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 2^nd Quarter of this year was $3.884.
• In 3^rd 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

–Nandini Panchal

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