Carvana ($CVNA) Faces Financial Struggles with Shrinking Subprime Lending, $200M Losses, $5B Debt, and Bond Discounts
Carvana ($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.
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LeftHandedOctopusso negative growth $CVNA still unprofitable, ex one-time $800M gain from debt restructuring and market didn't see through that? #EMH what about auto dealers that are consistently profitable and growing their online platform faster than CVNA? Still 6x earnings.
Bluechip$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
- Bluechip
$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