What's the Media Buzz Surrounding Carvana Co. (CVNA)?

Bad news keeps piling up for CVNA investors. Today the Wall Street Journal is reporting: "The used-car dealer that was a pandemic winner is rushing to conserve cash as once-plentiful financing options dry up and business deteriorates." For more coverage, read the full article here. On Friday, Carvana Co. sank -3.1% to a price of $8.06. Are the markets overreacting?

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company's platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company belongs to the Consumer Cyclical sector, which has an average price to earnings (P/E) ratio of 24.11 and an average price to book (P/B) ratio of 3.11. In contrast, Carvana Co. has a trailing 12 month P/E ratio of -1.9 and a P/B ratio of 3.1.

Carvana Co. has moved -97.2% over the last year compared to -15.3% for the S&P 500 -- a difference of -81.8%. Carvana Co. has a 52 week high of $296.7 and a 52 week low of $6.5. At today's price of $8.06 per share, Carvana Co. is -70.94% away from its target price of $27.74, and on average, analysts give the stock a rating of hold.60.0% of the company's shares are linked to short positions, and 120.4% of the shares are owned by institutional investors.

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