Can Used Car Retailer Carvana Repeat its 1000% Legend in 2023?
Carvana's shares surged over 30% after reporting its first-ever profit and forecasting core current-quarter profit to exceed $100 million.
In the premarket trading, $Carvana Co.(CVNA)$ already sets a fresh 52-week-high, hitting $70.
After experiencing a surge during the COVID period and a sharp decline in 2022, CVNA achieved an over 1000% increase in 2023.
Will its remarkable growth continue this year?
Let’s look at key earnings data.
Net income of $450 million for 2023, compared to a loss of $1.59 billion in 2022. (Increase by 128%)
Net debt decreased to $5 billion, down more than $1 billion, while interest payments rose to $632 million.
Carvana's retail gross profit per unit significantly increased, reaching over $5,500 in 2023, compared to $3,022 in 2022.
The company achieved profitability by cutting costs, including trimming inventory and reducing advertising expenses.
There is another meme stock $Palantir Technologies Inc.(PLTR)$ also posted first profitable quarter in this earnings season.
How do you view?
Can Carvana repeat its legend in 2023?
What’s your target price?
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