Why Carvana Stock Soared Today
On Friday, used-car company Carvana (NYSE: CVNA) released a 53-slide presentation outlining how it intends to cut costs and generate free cash flow (FCF) and apparently the market is a big fan. As of 10:30 a.m. ET Monday, Carvana stock was up 15%.
According to Carvana management, factors in the used-car industry, the economy, and the financial markets are all compelling it to prioritize profitability over growth right now. This is in line with its previously stated goal of being "the largest and most profitable automotive retailer." But this is a clear deviation from its previous priority of selling more cars and generating more revenue.
Image source: Getty Images.
Source Fool.com
