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CARVANA COCARVANA COCARVANA CO

CARVANA CO

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CVNA trade ideas

CARVANA $CVNA - Feb. 15th, 2024CARVANA NYSE:CVNA - Feb. 15th, 2024 BUY/LONG ZONE (GREEN): $48.00 - $60.00 DO NOT TRADE/DNT ZONE (WHITE): $40.00 - $48.00 SELL/SHORT ZONE (RED): $25.25 - $40.00 By request. My main focus would be on the range between $40.00 - $48.00, this area has determined the trend five times, which are seen each time price touches and breaks or touches and rejects. Currently I'm looking at a bull trend that was set after a breakout of the range in the $40-$48 zone. Any data before June 2023 I was not considering. If I had to look for an upside target, assuming the trend stays bullish long term once price reaches $60, the next logical point would be $103. Due to the lack of data and because price is trading away from the start of my bullish zone, I personally would not look to enter until there is a reaction to the $60 area or a pullback to the $48/$49 zone.
NYSE:CVNALong
by TonyAiello
3
Carvana Co. Class AKey arguments in support of the idea. • Declining used car prices in the U.S. could weigh on the Company's sales. • Carvana's high debt burden remains a significant risk. Investment Thesis Carvana Co. (CVNA) is one of the largest online-only used-car retailers in the U.S. The Company performs almost all the functions a physical dealer would offer, including buying and selling cars. Carvana is known for its network of vending machine car dealerships, where buyers can pick up their purchased cars, avoiding lengthy communications and checkout procedures. As of December 31, 2023, the Company operated in 316 major U.S. cities. Used car prices in the U.S. are trending down. The Manheim Used Vehicle Value Index, which is one of the key indicators of used car prices, has shown monthly drops of more than 10% since the beginning of the year against the values of the previous year. The downward trends in prices are being observed not only in the wholesale used car market, but also in the new car market. American automakers in their forecasts for 2024 note that they expect some decrease in selling prices. These assumptions suggest that Carvana's revenue may remain under pressure this year after the Company's 2023 earnings showed a 20% y/y decline. Carvana's cost-cutting initiatives to achieve positive operating margins may not succeed. The Company remains unprofitable at the operating profit level, but its growing debt burden is forcing Carvana to focus on margin expansion. As part of its cost-cutting plan, Carvana has significantly reduced advertising spending and optimized personnel costs, but overall overhead expenses per car sold increased to $1,741 in the third quarter of 2023, up from $800 in the first half of 2021. The reduction in advertising expenses per vehicle sold by more than 20% y/y in 2023 may have contributed to the decline in revenue last year, although it helped reduce the share of total administrative expenses as part of revenue. Carvana's high debt burden remains a major risk to the stock. We see that the Company had $960 million on its balance sheet at the end of last year, which is lower than the size of Carvana's adjusted net loss for the year. The Company has nearly exhausted its ability to raise new financing through debt accumulation. On September 11, 2023, S&P assigned its 'CCC+' credit rating to Carvana, reflecting an increased risk of default on its obligations. Net Debt/EBITDA'2024 is currently estimated at 14x based on FactSet's 2024 EBITDA consensus forecast. In the coming quarters, the Company may need additional financing through the sale of shares. This step could have a significant negative impact on the stock. We believe that in the short term Carvana Co. stock may end up in negative zone. We maintain a Sell rating on CVNA stock with a price target of $60. A stop-loss order is recommended at $78.
NYSE:CVNAShort
by FreedomHolding
CVNA | I Like This One | Bullish DivergenceCarvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company's platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. Carvana Co. was founded in 2012 and is headquartered in Tempe, Arizona.
NYSE:CVNALong
by DivergenceSeeker
2
CVNA Weekly ChartI’ve been watching and trading CVNA for a few years now. We can see it trading in a bullish channel, however it is facing resistance at the top part of the channel. RSI is well-overbought and we are also seeing bearish divergence on the MFI which is signaling to me a correction in the near-term. Looking for support from the peak of the last rally with a price target at/around $57. Aside from technical indicators, Carvana does not have enough cashflow to justify its near-$90 price tag. Not only considering revenue, Carvana’s egregious amount of debt is enough to consider its price irrational. While I am bearish in the near-term on Carvana, I am still bullish in the long run. Despite their enormous debt, they have proven to be successful in being able to manage it and minimize it, while also increasing revenue.
NYSE:CVNALong
by damyam23
1
CVNA Possible Head and Shoulders Reversal. My attention was drawn to CVNA as a possible long trade last year due to extreme pessimism around it on social media. I seen about 20 people calling for it to go bankrupt in the same day. I often find when this happens it's worth having a look for TA patterns suggesting a "Fade the obvious" type of trade. Which CVNA had and has worked out really well. I gave the target area for that as the 100 - 110 zone but it may turn out 90 area was the high for the move. Looking to try some shorts with stops above the possible head of the pending bearish head and shoulders here so long as it's not invalidated by a gap up.
NYSE:CVNAShort
by holeyprofit
2
Carvana's Journey Through Shifting Economic Tides Carvana Co.( NYSE:CVNA ) stands as a testament to resilience and adaptation. As the online car retail giant braces for lower interest rates amid tightening lending standards, it navigates through challenges with strategic maneuvers and a steadfast commitment to its vision. In a recent interview with Bloomberg News, Carvana's Chief Financial Officer, Mark Jenkins, shed light on the company's proactive measures in response to escalating delinquency rates across the industry. Recognizing the pressing need for prudence, Carvana ( NYSE:CVNA ) has implemented higher down payment requirements and capped maximum payments, signaling a shift towards a more selective approach in extending credit. The decision to tighten lending standards comes at a critical juncture for Carvana ( NYSE:CVNA ), which, like many others, has witnessed a surge in delinquencies amidst the backdrop of rising used-vehicle prices and interest rates. However, these challenges haven't deterred Carvana's pursuit of innovation and growth. Founded in 2012, Carvana ( NYSE:CVNA ) initially garnered attention for its innovative approach to online car sales, epitomized by its iconic vending-machine towers. Yet, as the pandemic reshaped consumer behavior and economic dynamics shifted, Carvana ( NYSE:CVNA ) faced headwinds, reflected in a significant decline in the wealth of its founders, Ernie Garcia II and Ernie Garcia III. Despite these setbacks, Carvana's ( NYSE:CVNA ) recent financial performance showcases resilience and potential. With a reported net income of $150 million for 2023, coupled with a total revenue of $10.8 billion, the company demonstrates an ability to adapt and thrive in challenging environments. Notably, a strategic restructuring initiative resulted in a one-time gain of $878 million, underscoring the company's commitment to financial health. Wall Street's optimism towards Carvana ( NYSE:CVNA ) is palpable, evidenced by a 43% surge in stock value within the first two months of the year. Furthermore, robust gross profit margins and prudent expense management paint a picture of operational efficiency and sustainability. Looking ahead, Carvana ( NYSE:CVNA ) remains poised for growth, buoyed by expectations of lower interest rates and an optimistic outlook for the automotive market. With forecasts projecting adjusted earnings before interest, tax, depreciation, and amortization to surpass $100 million in the first quarter of 2024, Carvana ( NYSE:CVNA ) is positioned for continued success. Moreover, the company's strategic hiring initiatives, coupled with expansion plans for its vending machine network, underscore a commitment to operational excellence and customer-centricity. However, challenges persist, particularly concerning the company's debt burden. Despite a successful restructuring effort, Carvana ( NYSE:CVNA ) faces scrutiny regarding its leveraged business model and reliance on securitized consumer loans. Analysts warn of potential risks associated with loan securitizations, highlighting the need for a cautious approach to balance sheet management. In conclusion, Carvana's ( NYSE:CVNA ) journey reflects the resilience and adaptability inherent in successful enterprises. As it navigates through turbulent economic waters, the company's commitment to innovation, prudent financial management, and customer satisfaction serves as a beacon of hope amidst uncertainty, reaffirming its status as a pioneer in the automotive industry's digital transformation.
NYSE:CVNALong
by DEXWireNews
2
Carvana CVNA short squeeze is over Short chance of a lifetimeSo a used car dealership is worth FWB:15B 🤣. I get the current price action given before earning and at it's peak almost 50% of it's float shares were shorted and it would take almost 6 days for everyone to cover their short positions. But this company has almost SEED_TVCODER77_ETHBTCDATA:7B in debt, making $250 million in loan payment annually, losing cash and the fed isn't raising rates anytime soon. Once these poor souls that shorted below the $80 range cover and the smart shorts who now waited for it to hit it's last resistance point back in April of 2020 when earning came out and this thing gapped down, we'll see this used car dealership stock tumble. From my chart i'm looking at closing my position at around $60-$62. Gap always get filled!
NYSE:CVNAShort
by alisalek
6
CVNA - Trade setup that can yield big profits TODAY!This will be an excellent (and may I saw obvious) trade to look out for today. After a strong move post-earnings, we have already shown signs of buyer weakness at these levels. Today we are looking for that squeeze and proof of buy side tapering at the top of our yellow and blue tapered buying continuation channels. They line up perfectly and will be wedging with strong orange buying - which is great confluence for me along. If buyers are unable to continue higher using orange and fail to break yellow and blue, this means... If we can't go up, __________ (Hint: we go down!). Will take this short on proof of tapering at the top of these channels and as we see in pre-market action we will be opening up right around these levels. Come join us in the livestream to see this trade taken in real time if it presents itself! Happy Trading :)
NYSE:CVNAShort
by ReigningTrades
3
CVNA- consolidation after the earnings gap higher LONGCVA on the 30-minute chart shows a high tight flag pattern after the big report of profit on an annual report. Inflation is affecting auto stocks and recession is increasing the number of used care purchases while inflation hangs in there. URLs for both a description of the pattern and the news are embedded in the drawing. The RSI indicator shows a quick move of the faster RSI line over the slower RSI line. The pattern is typically said to forecast bullish continuation out of the consolidation. I will get shares at fair value in the consolidation and follow price for signs of that continuation. Another observation of the consolidation is the price getting above the third upper VWAP bandline then settling down onto the support of the first upper line. I look to target 78 from an entry of 68 for a 15-18% upside with risk constrained by the earnings report and current relative trading volume.
NYSE:CVNALong
by AwesomeAvani