Carvana Shares Plummet As Used Car Industry Struggles
Shares in Carvana continued falling Tuesday morning, down more than 50% from Thursdays close, after missing Wall Streets third-quarter expectations.
Carvanas share price on Tuesday morning dropped to just $6.63 per share, down from a peak of more than $360 per share last year.
The used car marketplace is struggling amid inflation, along with competitors like CarMax.
Used car prices rose rapidly during the course of the pandemic, but rising interest rates are causing those prices to start falling.
On Friday, Morgan Stanley moved its $68 price target for Carvana stock, with analyst Adam Jonas saying it could be worth as little as $1 per share.
In a note to investors, the company noted that “we were always going to have to traverse difficult periods and cycles on our way to fulfilling our mission.”
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