On the surface Carvana's (CVNA) last earnings report was pretty rosy. Revenue up, earnings up, sales up. Unfortunately, the company actually lost shareholders over $1 billion dollars last quarter.
While CVNA pays no dividend and reports a 'profit,' they also pay their directors and staff via massive share issuance.
Let's dive into the numbers. Last quarter Carvana reported a 'profit' of $250 million dollars. In that same period their outstanding shares rose from 137,634,000 to 142,749,000. An increase of 5.115 million shares. At an average price between $300-400 a share that is $1.53 – $2.04 billion dollars.
Meaning the company actually lost shareholders somewhere in the ball park of $1.28-1.79 billion dollars. Carvana's entire profitability is an illusion, at a time when truly profitable companies are buying back shares and issuing dividends.
Positions and Disclosure: I am a retail trader not a financial advisor. After seeing this earnings report and the very bearish technical chart I opened a put position against Carvana.
BFLO-Retail
Carvana (CVNA) Lost Over 1 Billion Dollars Last Quarter
byu/BFLO-Retail instocks
Posted by BFLO-Retail
3 Comments
One of the best companies in the S&P baby!!
this company is fucked, but so is that stock market. it should have never been added to the SP500 and shouldnt be a 100b company… but things like that dont seem to matter in this market anymore
My bud repairs cars for them and he said it’s an awful company and said they do some shady stuff. The stock split potentially upcoming is the only thing I can see keeping the stock price up.
I think it will go a lot lower but that’s just my opinion and don’t have a position nor am planning to start one.