Carvana - DD from a Senior Finance Manaer
Posted: Jan 20, 2025
- Research indicates Carvana may be engaging in suspect accounting practices
- Carvana is showing positive financial metrics despite challenges in used car market and loan issues
- Potential concern of abuse of favorable terms with DriveTime and other related parties
- CEO's father has sold significant amount of stock while Carvana is performing well
- Uncertainty if Carvana's practices are legal or not, potential unsustainable behavior
- Continued strategy could lead to stock price increases in short-term but could lead to issues in future
- OP owns puts on Carvana
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - While there are some users holding positions betting against Carvana, there is a prevalent sense of negativity surrounding the company's financial practices and sustainability. Summarized comments: - Discussion around holding puts on Carvana due to uncertain technical and financial outlook - Some users believe Carvana may be artificially boosting metrics - Comparisons made to Michael Burry's early short positions - Concerns about the integrity of Carvana's profit margins in a declining used car market - Mention of Hindenburg Research's Carvana short report and critique of its focus on $ALLY - Sentiment that Carvana's financial success seems unsustainable and possibly misleading - Some anticipate an eventual collapse or downturn, potentially requiring whistleblower or SEC involvement - Mixed strategies with some holding positions for a potential collapse and others betting on a rally Stock tickers discussed: $CVNA, $ALLY
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