Carvana has been a silent killer. The company created in 2013 isn’t even a decade old, but doing better than many of the other competitors in their market. The Ecommerce car dealership has been riding on some recent earnings beats and a “buy” rating from Goldman Sachs. Though the company is still in somewhat of an infancy stage, they have strong backing, a path forward, and could possibly breakeven despite COVID’s attempt to have us stop driving all together.
The recent good news sent the stock of Carvana up about 17 to 24 percent and they are hitting a crazy good mark at being about 150 percent plus, up Year-to-date. The stock at COVID’s most impactful point of 2020 sent Carvana down to just about 20 dollars a share. Today they are riding high as a fucking kite at 220 dollars plus a share. The company has obviously ben doing well and with a “contact-free” model already in place pre-pandemic, Carvana was poised already come out a little less scathed. They have cash on hand, albeit a small amount, but a good idea of what the next level might look like.
Right now, Carvana seems too high for the stock. But what the fuck do any of us know? Did you see any car manufacturers or dealerships doing well in 2020? Biz Bites did NOT. It just seemed that with the state of the economy and the lack of jobs that car sales would be down, but this is not the case for the COVID winners like Carvana. If they can keep a few more earnings reports as beats and continue with positive guidance there is no reason this stock could not be upwards of 400 dollars a share by the end of 2021. There was blood in the streets, but I guess it was not Carvana’s.
So, with good earnings and a path forward, even industries that look like they have no hope can come out alive from all this. Airlines where the fuck you at? Lol but seriously we already said that the transportation industry was faltering, it just looks like people haven’t been moving to much. But that does not mean there are companies that cannot thrive in the chaos and find a way out. Carvana sure as fuck did.
Anyway, that’s my take on it. Until next time. -GS
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