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CVNA

Carvana (CVNA) AnalysisCompany Overview: Carvana, a leader in the online used car market, is transforming its business model following its acquisition of ADESA's U.S. physical auction business in 2022. This acquisition has positioned Carvana as the second-largest used car company in the U.S. and is driving a shift towards a more profitable marketplace model. Key Highlights: Strategic Acquisition: The acquisition of ADESA's auction business is expected to enhance Carvana's profitability by transitioning towards a marketplace model, which offers higher margins compared to its traditional retail operations. Competitive Advantage: Carvana outperforms competitors like CarMax and AutoNation in terms of gross margin and profit per unit, bolstered by its strong online platform. Cost Efficiency: The company has successfully reduced over $1.1 billion in annual selling, general, and administrative (SG&A) expenses, demonstrating a commitment to improving operational efficiency. Financial Flexibility: Carvana secured a deal with creditors to extend loan maturities, providing the company with greater financial flexibility to navigate future challenges. Investment Outlook: Bullish Outlook: We are bullish on NYSE:CVNA above the $116.00-$118.00 range. Upside Potential: With an upside target of $230.00-$240.00, investors should consider Carvana's strategic shift, competitive advantages, and improved financial flexibility as key drivers for potential stock appreciation. 📈🚗 Carvana is driving towards profitability—consider it for a potentially lucrative investment opportunity! #CVNA #UsedCars 🚗🚀
NYSE:CVNALong
by Richtv_official
Carvana Shares Spike 35% on Earnings Beat First Quarter Results Carvana ( NYSE:CVNA ) stock Skyrocketed more than 30% during Thursday's market open after the used car retailer reported record results and turned a profit during the first quarter. Company's Performance Earnings per share: 23 cents — it was not immediately clear if it was comparable to the loss of 74 cents expected. Revenue: $3.06 billion reported Vs. $2.67 billion expected Carvana ( NYSE:CVNA ) reported record first-quarter net income of $49 million, compared to a $286 million loss during the prior-year period. Carvana ( NYSE:CVNA ) also posted an all-time-best adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, of $235 million, up from a $24 million loss a year earlier. Carvana's ( NYSE:CVNA ) gross profit per unit, or GPU, which is closely watched by investors, was $6,432. Carvana’s adjusted EBITDA profit margin for the quarter was 7.7%. Carvana’s net income included a roughly $75 million gain in the fair value of Carvana’s warrants to acquire Root Inc. common stock. This did not impact its GPU or adjusted EBITDA. “In Q1, we delivered our best results in company history, validating our long-held belief that Carvana’s online retail model can drive industry-leading profitability while delivering industry-leading customer experiences,” Carvana CEO and Chairman Ernie Garcia III said in a release. He reiterated that the company’s performance was driven by efficiency gains in its operations, especially the reconditioning of vehicles for sale as well as selling, general, and administrative expenses, among other areas. Carvana ( NYSE:CVNA ) expects to continue to grow its adjusted EBITDA profit margin further as the company continues to grow, according to Garcia. He declined to disclose how high the company believes it can grow those results. The company anticipates further cost reductions or efficiency gains to increase profitability through areas such as advertising as well as overhead and operational expenses. Garcia said Carvana ( NYSE:CVNA ) is working on increasing vehicle reconditioning and profitably rebuilding its vehicle inventory, which was nearing an all-time monthly low of 13 days’ supply in March. It has increased its reconditioning capacity of vehicles to prepare for sale by roughly 60% during the past year. he told CNBC that “Acquiring inventories, generally speaking, feel relatively straightforward to scale, but growing the recondition capacity is difficult,”. “Inventory today is certainly tighter than we would like for it to be. We’re working hard to build it back up, but we’re extremely well-positioned to do it.” Over the past two years, the results follow a major restructuring by the company to focus on profitability rather than growth, after bankruptcy concerns when Carvana’s stock lost nearly all of its value in 2022. Carvana ( NYSE:CVNA ) Shares have recovered since then. They had climbed roughly 67% year to date before the company reported its first-quarter results. The stock closed Wednesday up about 5% at $87.09 per share. For Q2, Carvana ( NYSE:CVNA ) said it expects a sequential increase in its year-over-year growth rate in retail units, and a sequential increase in adjusted earnings before interest, taxes, depreciation, and amortization. Technical Outlook Carvana ( NYSE:CVNA ) stock is trading within the overbought region with a Relative Strength Index (RSI) of 82.10 posing a threat of a trend reversal in the near term. Furthermore, the stock indicates a breakaway gap which occurs when the price gaps above a support or resistance area due to a news or fundamental.
NYSE:CVNALong
by DEXWireNews
CARVANA $CVNA | RANGE BREAKOUT BEFORE EARNINGS - Apr. 23rd,CARVANA NYSE:CVNA | RANGE BREAKOUT BEFORE EARNINGS - Apr. 23rd, 2024 BUY/LONG ZONE (GREEN): $72.50 - $81.25 DO NOT TRADE/DNT ZONE (WHITE): $68.50 - $72.50 SELL/SHORT ZONE (RED): $60.00 - $68.50 Weekly: DNT Daily: DNT 4H: DNT, lean bullish This was requested at the end of last week but I didn't get around to it. I drew up this NYSE:CVNA chart analysis yesterday as I was entering a new trade, but wanted to wait until today to post it. I did not adjust the zones and kept them as they were yesterday, even though today price has already broken into the bullish zone, there is still room to enter new trades to the upside, or if bears want to take on some extra risk they could enter extremely early here if they expect a pullback. Earnings release next Wednesday, May 1st, 2024, and I'm looking to take advantage of possible volatility. NYSE:CVNA has broken down structure on the weekly timeframe, developed bearish structure on the daily (which is now broken as of today), and had a defined range on the 4H (which was also broken as of today). Previous NYSE:CVNA trade idea is linked below! This is what I would personally look at before entering trades, everything is subject to change on a daily basis and as I analyze different timeframes and ideas. ENTERTAINMENT PURPOSES ONLY, NOT FINANCIAL ADVICE! trendanalysis, trendtrading, priceaction, priceactiontrading, technicalindicators, supportandresistance, NYSE:CVNA , carvana, carvanastock, cvnastock, cvna, carvanaearnings, earningsreport, earningsrelease, carvanaearningsreport, carvanatradeidea, carvanapricerange, rangebreakout, rangebreakdown, carvanarange, rangetrading, chartpatterntrading, chartpatterns,
NYSE:CVNA
by TonyAiello
2
CARVANA $CVNA - Feb. 15th, 2024CARVANA NYSE:CVNA - Feb. 15th, 2024 BUY/LONG ZONE (GREEN): $48.00 - $60.00 DO NOT TRADE/DNT ZONE (WHITE): $40.00 - $48.00 SELL/SHORT ZONE (RED): $25.25 - $40.00 By request. My main focus would be on the range between $40.00 - $48.00, this area has determined the trend five times, which are seen each time price touches and breaks or touches and rejects. Currently I'm looking at a bull trend that was set after a breakout of the range in the $40-$48 zone. Any data before June 2023 I was not considering. If I had to look for an upside target, assuming the trend stays bullish long term once price reaches $60, the next logical point would be $103. Due to the lack of data and because price is trading away from the start of my bullish zone, I personally would not look to enter until there is a reaction to the $60 area or a pullback to the $48/$49 zone.
NYSE:CVNALong
by TonyAiello
3
Carvana's Journey Through Shifting Economic Tides Carvana Co.( NYSE:CVNA ) stands as a testament to resilience and adaptation. As the online car retail giant braces for lower interest rates amid tightening lending standards, it navigates through challenges with strategic maneuvers and a steadfast commitment to its vision. In a recent interview with Bloomberg News, Carvana's Chief Financial Officer, Mark Jenkins, shed light on the company's proactive measures in response to escalating delinquency rates across the industry. Recognizing the pressing need for prudence, Carvana ( NYSE:CVNA ) has implemented higher down payment requirements and capped maximum payments, signaling a shift towards a more selective approach in extending credit. The decision to tighten lending standards comes at a critical juncture for Carvana ( NYSE:CVNA ), which, like many others, has witnessed a surge in delinquencies amidst the backdrop of rising used-vehicle prices and interest rates. However, these challenges haven't deterred Carvana's pursuit of innovation and growth. Founded in 2012, Carvana ( NYSE:CVNA ) initially garnered attention for its innovative approach to online car sales, epitomized by its iconic vending-machine towers. Yet, as the pandemic reshaped consumer behavior and economic dynamics shifted, Carvana ( NYSE:CVNA ) faced headwinds, reflected in a significant decline in the wealth of its founders, Ernie Garcia II and Ernie Garcia III. Despite these setbacks, Carvana's ( NYSE:CVNA ) recent financial performance showcases resilience and potential. With a reported net income of $150 million for 2023, coupled with a total revenue of $10.8 billion, the company demonstrates an ability to adapt and thrive in challenging environments. Notably, a strategic restructuring initiative resulted in a one-time gain of $878 million, underscoring the company's commitment to financial health. Wall Street's optimism towards Carvana ( NYSE:CVNA ) is palpable, evidenced by a 43% surge in stock value within the first two months of the year. Furthermore, robust gross profit margins and prudent expense management paint a picture of operational efficiency and sustainability. Looking ahead, Carvana ( NYSE:CVNA ) remains poised for growth, buoyed by expectations of lower interest rates and an optimistic outlook for the automotive market. With forecasts projecting adjusted earnings before interest, tax, depreciation, and amortization to surpass $100 million in the first quarter of 2024, Carvana ( NYSE:CVNA ) is positioned for continued success. Moreover, the company's strategic hiring initiatives, coupled with expansion plans for its vending machine network, underscore a commitment to operational excellence and customer-centricity. However, challenges persist, particularly concerning the company's debt burden. Despite a successful restructuring effort, Carvana ( NYSE:CVNA ) faces scrutiny regarding its leveraged business model and reliance on securitized consumer loans. Analysts warn of potential risks associated with loan securitizations, highlighting the need for a cautious approach to balance sheet management. In conclusion, Carvana's ( NYSE:CVNA ) journey reflects the resilience and adaptability inherent in successful enterprises. As it navigates through turbulent economic waters, the company's commitment to innovation, prudent financial management, and customer satisfaction serves as a beacon of hope amidst uncertainty, reaffirming its status as a pioneer in the automotive industry's digital transformation.
NYSE:CVNALong
by DEXWireNews
2
CVNA- consolidation after the earnings gap higher LONGCVA on the 30-minute chart shows a high tight flag pattern after the big report of profit on an annual report. Inflation is affecting auto stocks and recession is increasing the number of used care purchases while inflation hangs in there. URLs for both a description of the pattern and the news are embedded in the drawing. The RSI indicator shows a quick move of the faster RSI line over the slower RSI line. The pattern is typically said to forecast bullish continuation out of the consolidation. I will get shares at fair value in the consolidation and follow price for signs of that continuation. Another observation of the consolidation is the price getting above the third upper VWAP bandline then settling down onto the support of the first upper line. I look to target 78 from an entry of 68 for a 15-18% upside with risk constrained by the earnings report and current relative trading volume.
NYSE:CVNALong
by AwesomeAvani
Carvana's Remarkable Turnaround: From Debt Reduction to Profits Carvana ( NYSE:CVNA ), the online used car retailer, has announced its first-ever annual profit, signaling a remarkable turnaround for the company. Bolstered by strategic debt reduction measures and a surge in demand for used cars during the pandemic, Carvana ( NYSE:CVNA ) has defied expectations and emerged stronger than ever. The company's journey to profitability has been anything but smooth. Like many businesses, Carvana ( NYSE:CVNA ) faced unprecedented challenges during the COVID-19 pandemic, with disruptions in supply chains and fluctuations in consumer behavior. However, instead of succumbing to these challenges, Carvana ( NYSE:CVNA ) seized the opportunity to innovate and adapt. One of the key factors contributing to Carvana's ( NYSE:CVNA ) newfound success is its aggressive approach to debt reduction. By slashing its outstanding debt by a staggering $1 billion through a strategic pact with bondholders, Carvana ( NYSE:CVNA ) has significantly strengthened its financial position and improved its liquidity. This move not only alleviated immediate financial pressures but also instilled confidence among investors, leading to a surge in the company's stock price. Moreover, Carvana's astute management of inventory and expenses has played a crucial role in its turnaround strategy. Recognizing the need to clear excess inventory acquired at elevated prices, the company implemented measures to streamline operations and optimize efficiency. This included trimming inventory levels, reducing advertising expenditure, and focusing on cost-saving initiatives, all of which have contributed to improving the company's bottom line. Furthermore, Carvana's ( NYSE:CVNA ) ability to capitalize on shifting market dynamics has been instrumental in driving its profitability. During the height of the pandemic, as global chip shortages disrupted new car production and fueled demand for used cars, Carvana ( NYSE:CVNA ) positioned itself as a leading player in the online automotive retail space. Leveraging its innovative platform and seamless digital experience, Carvana ( NYSE:CVNA ) captured a significant share of the market, attracting a new wave of customers seeking alternative car-buying options. Carvana ( NYSE:CVNA ) remains optimistic about its prospects for growth. The company's forecast of an adjusted core profit for the first quarter "significantly above" $100 million underscores its confidence in its ability to sustain momentum. Additionally, with retail units expected to increase in the first quarter of 2024 and retail gross profit per unit remaining robust, Carvana ( NYSE:CVNA ) is well-positioned to capitalize on emerging opportunities in the used car market. Carvana ( NYSE:CVNA ) has not only overcome obstacles but has also emerged as a formidable player in the automotive industry. As the company continues to chart its course toward growth and profitability, investors and stakeholders alike can take pride in Carvana's remarkable transformation.
NYSE:CVNALong
by DEXWireNews
Looking bullish on CVNA very soon! As you can see here we have NYSE:CVNA on the 4 hour chart. We have 4 confluences, we have the 200 MA, support, a demand zone and we are trending upwards on the weekly all showing we shall go up. Now, all I am looking for is a strong green heikin ashi candlestick to break this trendline with valid volume. I would be targeting the nearest supply zone around the 49 dollar area. I do not set an actual TP but I do set a 50% SL. But of course only risk what you are willing to lose and swing trading is very risky. I would look to swing trade this stock to the upside! Thank you as always and please feel free to like, share, and comment on this post! Until next time, God bless.
NYSE:CVNALong
by OptionsMastery
CVNA Long after completed Fib. RetracementCVNA on a 30 minute chart trended up from November post earnings for 6-7 weeks until December 20th and then started falling from a head and shoulders pattern at the pivot. The Fib retracement tool is used to draw the retracement of the prior up trend. The Trend Based Fib Time is used on that prior up trend to show fib levels across time instead of price. Price is currently at the 0.5 Fib retracement for price and also at 0.5 for the latter tool. The other indicators show rising RSI, a flip between positive and negative directional indices and volatility beyond the running mean. I will take a long trade here targeting 52.3 which is just under a 0.5 fib retracement of the recent trend down. The stop loss will be set at 42.8 at the level of the reversal narrow-ranged candles. A option trade will be entertained for the February monthly expiration.
NYSE:CVNA
by AwesomeAvani
CVNA is Ready to Rally NYSE:CVNA Carvana Co. found a bottom at the all time low of 3.57 on Dec 7, 2022 after a significant decline from all time highs above 375 in August of 2021. The boom was largely driven by economic factors, there was a booming Used Car market with ultra-low interest rates and a desire to stay indoors with the pandemic that pushed people to use the new type of car-buying delivery service. The following bust was also largely economic: a waning Used Car market, rising interest rates and a subsequent bunch of bad earnings for CVNA. Now CVNA has steadied revenue, consistent Green Earnings Beats and made consistent higher lows from the bottom and shown strong supports at 7, 25, and 38. While up nearly 15x from the low a year ago, there is a lot of room to run even at current prices. Strong growth potential and the acquisition of brick/mortar car dispensers will allow for more robust revenue beneath the continued growth in deliveries as interest rates level out and the Used Car market resurfaces. Expect this major bounce momentum off the All Time Low to continue to at least a 38% retracement and previous resistance levels of 145 at a minimum target. With time and consistent momentum, as we've seen over previous years on this asset, prices will likely go back up to common retracement levels .500, .618, .786 and even beyond to new highs. While it could continue, this asset is very volatile, be sure to take profits at target levels.
NYSE:CVNALong
by shmYng