Carvana (CVNA), a low margin Automotive Retail stock with a net margin hovering between 3-6% is trading at a higher Price to Earnings (PE) ratio than the top Tech stocks in the world – tech stocks with double digit profit margins.
Approx PE Ratios
NVDA: 44x
AAPL: 34x
MU: 35x
CVNA: 93x
Trading at almost 2 1/2 times the valuation of cutting-edge tech stocks seems insane. But when you factor in that Carvana‘s numbers may be inflated by backdoor dealings and risky subprime loans (according to a recent Short report by Gotham City) CVNA’s actual PE multiple might be closer to 900x.
Full disclosure: I am not a financial advisor. This is not financial advice.
Position Disclosure: I have current open Short options positions against Carvana. I may open or close new positions, but for the near term, my trading will likely be heavily short against Carvana.
Carvana (CVNA) Valued at Higher PE Ratio than World’s Leading Tech Stocks AAPL / NVDA / MU
byu/BFLO-Retail instocks
Posted by BFLO-Retail
4 Comments
Problem for me is how damn expensive those puts are… you have some espensive shorts, my friend.
This is a scam.
PLTR says hello.
Now do WMT