Where Will Carvana Stock Be in 5 Years?
With shares up by a whopping 530% year to date, (NYSE: CVNA) stock seems to have risen from the dead. But while investors are more confident in the company's potential to overcome its near-term headwinds and regain a growth trajectory, debt and cash burn challenges remain. Let's explore what the next five years could hold for this embattled online used car dealership.
Founded in 2012 and going public through an initial public offering (IPO) in 2017, Carvana aims to revolutionize the used car industry by replacing dealerships with an e-commerce business model. The company's stock began to skyrocket amid the COVID-19 pandemic, which increased interest in stay-at-home-related companies. Shares peaked at a whopping $370 in mid 2021. But despite the substantial rally in 2023, the stock is still down around 92% from its all-time high.
The company has several key problems. Firstly, as pandemic-era trends normalized, investors lost interest in e-commerce stocks as a whole. The easing of new car production bottlenecks and rising rates also put a damper on the company's previously high growth rate, and exposed previously overlooked challenges with margins and profitability.
Source Fool.com
Carvana Co. Stock
Currently there is a rather negative sentiment for Carvana Co. with 3 Buy predictions and 7 Sell predictions..
The target price of 33 € compared with the current price of 113.06 € for the stock indicates a negative potential of -70.81%.
