Carvana ($CVNA) is facing financial challenges with shrinking subprime lending, $200 million quarterly losses, and $5 billion debt. Market signals show bonds trading at significant discounts, indicating low market valuation despite stock price increase. Concerns raised about profitability and growth compared to other auto dealers.
so negative growth $CVNA still unprofitable, ex one-time $800M gain from debt restructuring and market didn't see through that? #EMH what about auto dealers that are consistently profitable and growing their online platform faster than CVNA? Still 6x earnings.
$CVNA 2028 unsecured Bonds paying 5.875% interest trading at 55 cents on the dollar... These are distressed levels for a company that is Now apparently printing money 🤡LOL NOT! https://t.co/iVvs7TZ2Ko
$CVNA SECURED 2030 bonds paying 10.5% interest trading at 75 cents on the dollar. Not exactly a great sign of confidence... https://t.co/9C4zvdPYCy
$CVNA 2029 bonds trading at 30 cents on the dollar. Investors not expecting to get paid... https://t.co/kYbHTHVuZQ
$CVNA Carvana a shrinking subprime lender that loses $200 million in a quarter and has $5 billion debt. Stonk price going up so the bulls will feel right. But outside crazy land, that's a worthless company.
Message from the market: $CVNA's 10.25 PIK notes trade at 75 cents on the dollar. In fact all of CVNA's bonds trade at big discounts to par which means the market is saying that CVNA's EV is lower than the face value of the debt... https://t.co/ZX8c2cNUeK