Is Carvana a Buy After Falling 93% From Its All-Time High?
Many growth stocks and story stocks have experienced sharp declines during the current market sell-off, but few have endured as spectacular a fall from grace as Carvana (NYSE: CVNA). Shares have fallen all the way from a 52-week high of $376 last summer to just $24.27 today. That is a long way to fall -- and keep in mind that the $24.27 price includes a 13% jump last Friday. So why is Carvana down so much, and is it a buy now?
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The Tempe, Arizona-based company is seeking to disrupt the used car industry with its online platform, which facilitates buying and selling vehicles online. I have personally used the platform and found it to be very convenient and a notable improvement on the traditional process of buying or selling a vehicle, which can often be a frustrating process. The company sends a truck to pick up your vehicle (if you're selling to them), and delivers your vehicle right to your driveway as well. In my experience, it is easy to buy or sell from Carvana, and there is no haggling -- the price for each vehicle is right on the website.
Source Fool.com
