Why Carvana Surged 16% in May
Shares of Carvana (NYSE: CVNA) rose 16.1% in May, according to data from S&P Global Market Intelligence, taking the stock from $80 per share to $93 per share. For context, that came on the heels of a massive rebound that had already lifted the stock up from its pandemic-plunge low of just $29 per share.
On May 6, the online used car retailer reported encouraging first-quarter financial results, which contributed to the stock's surge. In the quarter, the company sold 52,427 cars to its retail customers for year-over-year growth of 43%. Sales had been exceeding prior expectations up until mid-March, when demand slowed down substantially. This continued into April when retail used car unit sales fell approximately 30% year-over-year early in the month.
However, in the weeks since then, sales rebounded to approximately 20% to 30% year-over-year growth, which the company believes is far better growth than the rest of the industry is experiencing.
Source Fool.com
