Why Carvana Stock Was Plunging Today
Shares of Carvana (NYSE: CVNA) were crashing today as several factors combined to send investors running for the exits. A broad pullback in stocks, coming after the Federal Reserve raised benchmark interest rates by half a percentage point yesterday, was the most evident reason, with tech stocks feeling the sting as the Nasdaq closed down 5%.
A number of its e-commerce stock peers also reported earnings last night and this morning, including Etsy, eBay, Shopify, and Wayfair, and all of the reports indicated a sharp deceleration in growth in the sector, which added to concerns about Carvana, the leading online car retailer.
Additionally, the stock got an analyst downgrade, and higher interest rates will make it more difficult for customers to buy cars, though it will also help its financing profits.
Source Fool.com
