Carvana reported unimpressive Q3 results with widening losses yet the stock price increases over 20%.
Growth is slowing down substantially, which is quite concerning for a money losing company like CVNA.
The strategy of increasing profits through buying cars from customers is quite limited.
Valuation is high for a company that has generated widening losses in a risky industry.
Despite reporting an unimpressive Q3 with widening losses and slowing growth, Carvana(CVNA) has risen substantially by over 20% in less than a month. We believe that the current price increase has little to