Carvana Stock Has Exceptional Upside, But There's 1 Major Red Flag
Last year was a difficult one for the stock market in general, but even more so for growth tech stocks in particular. Carvana (NYSE: CVNA), a fast-growing and disruptive online used-car retailer, is one such enterprise that wishes 2022 had never happened. It's facing some serious challenges right now, and the stock was down a whopping 98% last year.
While the shares continue to bounce around quite a bit, Carvana's current market capitalization is about $1.2 billion. I think the company still possesses huge upside. The issue, however, is that there is one big red flag.
The traditional way that used cars are sold in the U.S. is a process many hate. Prospective customers must not only choose from a limited selection of cars on the lot, but they also have to haggle with salespeople for better pricing and financing terms. I haven't even mentioned how long the entire process can take.
Source Fool.com
