Carvana Co ( (CVNA) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
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Carvana’s stock faced turbulence following a critical report by Hindenburg Research, highlighting concerns about the company’s financial practices and valuation. The report questioned $800 million in loan sales, potential accounting manipulation, and underwriting standards, while criticizing Carvana’s high trading multiple and substantial debt. Despite these allegations, Carvana’s stock demonstrated resilience, managing to recover and post a gain, indicating sustained investor confidence. The company dismissed the report’s claims as misleading and reiterated that similar allegations have been made by short sellers in the past.
More about Carvana Co
Average Trading Volume: 2,771,239
Technical Sentiment Consensus Rating: Sell
Current Market Cap: $42.22B
For further insights into CVNA stock on TipRanks’ Stock Analysis page.
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