Carvana shares climbed to an all-time high of about $401 this week, up more than 10,000% from their $3.83 trough in December 2022 and fully erasing a 99% collapse from the company’s 2021 peak. The online used-car dealer’s recovery marks a rare 100-bagger move in just over two and a half years. The latest leg of the rally followed stronger-than-expected second-quarter results. Adjusted earnings beat Wall Street forecasts by $0.11 a share and revenue also exceeded estimates. Management added that it expects retail vehicle sales in the third quarter to increase sequentially from the second quarter, reinforcing optimism about the company’s operational turnaround. Research cited by market analysts shows that only 16% of firms suffering a 95%-plus drawdown ever reclaim their highs, typically taking about eight years; Carvana managed the feat in roughly 2.6 years. The swift rebound has delivered steep losses to short sellers who had amassed bearish positions in the stock.
Carvana's stock price dropped 99% in 2 years. Then it ran back turbo to all-time highs in the next 2 years. The market is a voting machine in the short term, but a weighing machine in the long-term. https://t.co/yyBEgZe06F
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Short Sellers Burned as Carvana Soars 10,000% From Lows