Back From The Dead? Carvana Shares Erupt After Company Reports "Improved" Financial Outlook
Carvana Co. shares erupted Thursday morning after the e-commerce platform for buying and selling used cars expects to report improved profit metrics in the second quarter.
Ahead of an industry conference, Carvana reported that its second-quarter adjusted earnings, before interest, taxes, depreciation, and amortization, will be at least $50 million and total gross profit per car above $6,000.
*CARVANA: ADJ GROSS PROFIT PER UNIT EXPECTED TO BE ABOVE $6,000
— zerohedge (@zerohedge) June 8, 2023
*CARVANA JUMPS AS MUCH AS 11% AFTER UPDATING OUTLOOK
"Our record-breaking 2023 first quarter is evidence that our strategy is working, and our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected," said Ernie Garcia, Carvana Founder and CEO.
Shares of Carvana jumped as much as 27% in premarket trading in New York. Recall the company was left for dead in late 2022, falling to a low of $3.55 on Dec. 7 on bankruptcy fears.
Let's not forget there's an epic short position built into Carvana.
50% of float is short https://t.co/v5JH6VpaA5
— zerohedge (@zerohedge) June 8, 2023
The latest Bloomberg data shows 50% of the float is short.
Garcia continued: "The team's persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan."
