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Why Carvana Was Bouncing Back Today

TheMotleyFool

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Shares of Carvana (NYSE: CVNA) were rallying Thursday, one day after the stock plunged on news that its major creditors had teamed up to negotiate with the online used car dealer, a sign that they were preparing for the company to go bankrupt.

There was no specific news out on Carvana Thursday, but its recovery looked like a classic dead cat bounce. It seems at least some investors believe the stock was oversold after it fell 43% Wednesday.

On Thursday, the stock was up by about 20% as of 1:42 p.m. ET, recovering a bit more than a quarter of the prior day's losses.

Source Fool.com

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