{"id":37565,"date":"2025-03-07T11:35:41","date_gmt":"2025-03-07T11:35:41","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/03\/07\/carvana-stock-price-is-crumbling-is-it-safe-to-buy-the-cvna-dip-2\/"},"modified":"2025-03-07T11:35:41","modified_gmt":"2025-03-07T11:35:41","slug":"carvana-stock-price-is-crumbling-is-it-safe-to-buy-the-cvna-dip-2","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/03\/07\/carvana-stock-price-is-crumbling-is-it-safe-to-buy-the-cvna-dip-2\/","title":{"rendered":"Carvana stock price is crumbling: is it safe to buy the CVNA dip?"},"content":{"rendered":"
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Carvana stock price has moved into a bear market after plunging by over 36% from its highest level this year. CVNA has fallen to its lowest level since January 26, giving it a market cap of $46 billion. So, is Carvana a good stock to buy now?<\/p>\n

Carvana is growing, but concerns remain<\/h2>\n

Carvana has become one of the fastest and best-performing companies in Wall Street after surging by over 180% in the last five years. It rose by over 6,300% from its lowest level in 2023, bringing its market cap to over $43 billion.<\/p>\n

Carvana stock has jumped after the management successfully handled its debt burden, which threatened its existence a few years ago.<\/p>\n

The company has also benefited from strong revenue growth as it continued to gain market share in the US. As a result, its revenue jumped to over $13.6 billion in 2024, up from $10.7 billion a year earlier. <\/p>\n

It has also become a highly profitable company, with the annual figure rising to $210 million. This profitability is because of its cost reduction, with its advertising expense per unit falling by 25% to $550.<\/p>\n

Carvana\u2019s stock has also jumped as the management has prioritized profitability over revenue growth. This prioritization has pushed the management to ensure that all vehicles it sells are delivered profitably. <\/p>\n

Carvana has attracted substantial criticism and praise in the past. Most critics point to its valuation<\/a> and its arrangement with DriveTime, a company started by Carvana\u2019s founder father. Hindenburg Research, a popular short seller company that shuttered its operations this year, accused the company of trade manipulation.<\/p>\n

It also accused Carvana of having a toxic loan book, comprising of $15.4 billion in asset-backed securities (ABS) and substantial delinquencies. Carvana has rejected all these claims and maintained that its business was doing well.<\/p>\n

CVNA growth continued soaring in Q4<\/h2>\n

The most recent results showed that Carvana continued doing well <\/a>in 2024. It sold 416,348 vehicles during the year, a big increase from the 312,847 it sold a year earlier. These vehicles brought in its revenue to $13 billion.<\/p>\n

Notably, Carvana\u2019s annual retail units were lower than the 425,237 and 412,296 that it sold in 2021 and 2022. That is a sign that the company is benefiting from higher vehicle prices sold on its platform. Indeed, the gross profit per unity rose to $7,196, up from minus $201 a decade earlier.<\/p>\n

The management expects that its business will continue doing well this year. While it did not give a number, Wall Street analysts anticipate that the first quarter revenue will rise by 27% to $3.9 billion. The annual revenue figure will grow by 19% to $16.34 billion, followed by $19.5 billion next year.<\/p>\n

The biggest concern for Carvana stock price is that it is still one of the most overvalued companies on Wall Street. It has a trailing P\/E ratio of 117.52 and a forward multiple of 69. <\/p>\n

Read more: JPM raises Carvana stock target: how high could CVNA go in 2025?<\/a><\/p>\n

Carvana stock price analysis<\/h2>\n
<\/figure>\n

CVNA<\/a> chart by TradingView<\/p>\n

The daily chart shows that the CVNA share price has crashed after peaking at $292.87 earlier this year. It has now plunged by over 30% to $186, and moved below the key support level at $267, the highest swing in November last year. This price was the double-top point. <\/p>\n

The stock has crashed below the 50-day and 100-day moving averages and is nearing the neckline at $175.50, the lowest swing on January 3. Also, the Percentage Price Oscillator (PPO) and other oscillators have all pointed downwards.<\/p>\n

Therefore, because of the double-top pattern, there is a risk that it will have a strong bearish breakdown, with the next point to watch being at $150. <\/p>\n

The post Carvana stock price is crumbling: is it safe to buy the CVNA dip?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Carvana stock price has moved into a bear market after plunging by over 36% from its highest level this year. CVNA has fallen to its lowest level since January 26, giving it a market cap of $46 billion. So, is Carvana a good stock to buy now? Carvana is growing, but concerns remain Carvana has <\/p>\n","protected":false},"author":1,"featured_media":37566,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-37565","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/37565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=37565"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/37565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/37566"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=37565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=37565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=37565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}