How is CVNA not at 0?
Posted: Jan 06, 2025
- Company: CVNA (Carvana)
- Sold $800M in loans to suspected related party linked to Cerberus Capital
- Inflated revenue through deals with related-party DriveTime
- Approved nearly all loan applicants, creating risky subprime portfolio
- Masked delinquencies by issuing frequent loan extensions
- Packaged toxic subprime loans into asset-backed securities with high delinquency rates
- Insiders sold billions in stock during inflated valuations
- CEO's father sold $3.6B in stock before 99% stock crash
- SEC investigation and class-action lawsuit allege fraudulent activities and accounting manipulation
- Insane almost 20K PE ratio indicates serious issues and potential fraud
What do people on Reddit think?
🚨 Reddit sentiment: mixed/negative - While there are mixed feelings about the feasibility of shorting or buying puts on CVNA, majority sentiment reflects skepticism and concerns around its subprime lending practices, possible overvaluation, and negative attention from reports like Hindenburg. Summarized comments: - Some users are buying puts on CVNA but find them expensive - There is a sentiment that CVNA operates in a risky subprime securities market - Some users are skeptical, feeling that CVNA is overvalued and possibly a fraudulent entity - Users warn others about the risks of shorting CVNA, hinting it might not play out as expected - Hindenburg's negative report on CVNA loans raised concerns about the stock's future - Institutional holdings may be affecting CVNA's current share price - Some are cautious about the timing of stock price downfall, indicating uncertainty about when a decline might occur Stock tickers discussed: $CVNA
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