• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Is it safe to buy the Carvana stock dip?
Investing

Is it safe to buy the Carvana stock dip?

by November 23, 2022
by November 23, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Carvana (NYSE: CVNA) stock price has had a remarkable fall from grace as concern about the company continued. It plunged to a low of $6.8, which was its all-time low. The stock has plunged by more than 98% from its highest level in 2021 and by 97% this year.

Will Carvana go bankrupt?

Carvana is a technology disruptor in the auto industry. The firm makes it possible for people to buy cars through the internet. Customers can have the cars delivered or they can pick them in one of its several vending machines.

Carvana business had spectacular growth during the pandemic. This growth happened as interest rates remained at a record low and as the government dished trillions in stimulus. Used car prices were in a strong downward trend.

The situation has changed this year as interest rates and inflation jumped. As a result, the number of used cars sold has fallen sharply. This has affected companies like Carvana and Vroom. The firm has also laid off thousands of employees.

Carvana has reached distress levels. For example, the firm recently issued $3.25 billion bonds with a coupon of 10.25%. As a result, the firm’s interest expense will more than double. The firm has insisted that it has adequate liquidity to fund growth in the next few months. It has $316 million in cash and around $2 billion in real estate. Still, analysts believe that Carvana could go bankrupt.

Still, a key concern is that Ernest Garcia II, the father of the firm’s CEO has been in a selling binge in the past few years. While he recently bought stock worth $269 million, he has been selling for years. In the past few years, he has sold stock worth over $1 billion. Ernest Garcia, the CEO bought stock worth $24 million in April.

Carvana stock price forecast

The weekly chart shows that the CVNA stock price has been in a strong bearish trend in the past few months. It dropped below the important support levels at $22 and $19.37. The stock has moved below all moving averages while the accumulation and distribution has tumbled.

The Relative Strength Index (RSI) and the Stochastic Oscillator have moved to the oversold levels. Therefore, the stock will likely continue falling as sellers target the next key support level at $5.

The post Is it safe to buy the Carvana stock dip? appeared first on Invezz.

You Might Also Like
  • Should you buy JPMorgan stock after its Q4 earnings?
  • Cramer reveals three industrial stocks worth owning for 2023
  • HSBC share price: Winds of change are blowing
  • The 7 Most Popular Cryptocurrencies Right Now
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Is corrupt Glencore a good buy after rising by 40% YTD?
next post
3 predictions Cathie Wood made and what are the odds of them happening

You may also like

Top 3 monthly dividend stocks to boost your income stream

November 25, 2022

Long Call Option Strategy

October 8, 2023

Apple stock claims a near 2-year low, and sellers still...

December 28, 2022

Goldman Sachs Moves Euro Swap Trading Desk from London

November 30, 2022

Curry’s share price comes back to earth: is it safe...

December 19, 2022

OKX Chain launches Liquid Staking with up to 40% APR

December 20, 2022

3 investments David Einhorn believe will pay off big in...

November 23, 2022

Inflation heavily tilted against the American middle class in 2022

December 31, 2022

BTC hovers near $17K as analyst identifies area of ‘real...

December 12, 2022

Justin Wolfers: “Inflation has clearly peaked”; CPI at 7.1%

December 13, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Elon Musk: here’s why Tesla stock...

    December 21, 2022

    Wise share price outlook as revenue...

    November 29, 2022

    Should you buy or sell the...

    December 20, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here