Posted on

Carvana nirvana? Shorted stock surges 56% as company predicts record profits


On Thursday, online car retailer Carvana announced an especially rosy outlook (i.e., forecasted record profits) for the second quarter of 2023, and investors responded by driving the company’s stock price up 56% before the market closed. The company closed the day worth $4.58 billion, according to Google Finance data.
The retailer — a popular short — predicted in May that it would report a quarterly profit in Q2. At the time, the company didn’t offer a specific figure. In its latest statement to investors, Carvana said it anticipates an adjusted EBITDA north of $50 million. Wall Street analysts previously forecasted an adjusted loss of $6 million, per Reuters.
Carvana also said on Thursday that it expects to report a non-GAAP total gross profit per unit (its profits per car) above $6,000. That’d be a new record for the debt-saddled retailer.
In a prepared statement, Carvana founder and CEO Ernie …

Read More