Why Carvana Surprised the Market and Soared 20% This Week
Shares of Carvana (NYSE: CVNA) have bucked the broader market trend this week, rising 20.4% from where they closed last Friday, according to data from S&P Global Market Intelligence. The S&P 500 is up only 2.2% over the same time frame.
There was no real good reason for the online car dealer to see such a strong response, especially since its license to operate in Illinois was suspended again -- not the first run-in with regulators Carvana has had. It's had similar experiences in Pennsylvania, Michigan, and North Carolina.
Not being able to sell cars in a particular market is kind of a big thing for a car dealer, and its stock was appropriately walloped as a result (though it did recover and eventually eke out a gain for the day), but the very next day Carvana's shares were off to the races again, surging 20% in one day.
Source Fool.com
