What Caught Our Attention in the Investment World? – Week of September 21-25, 2020

By Kuldip K. Ambastha

During the past trading week, Carvana Co. (CVNA) delivered a +30.6% return on Tuesday, September 22, 2020, due to strongly positive financial results showing ongoing growth. Carvana Co. is an innovative retailer which sells cars out of huge vending machines, and during the latest quarter it showed impressive projected data related to retail units sold, total dollar revenue, gross profit per unit, adjusted pre-tax operating profit margin, and adjusted pre-tax operating income. Along with the impressive data seen, Carvana Co. provides great customer experience. Though not yet profitable, the company is on track to profitability within the next few years.

Carvana Co. customers are able to shop for a car across many thousands of available used cars, and then can buy a car in about 10 minutes. The purchased car can then be picked up at a vending machine somewhere in the USA, using a gigantic coin. A father-and-son duo, Ernest Garcia II (largest shareholder) and Ernest Garcia III (Chief Executive Officer [CEO]), are the key individuals behind Carvana Co., which had its initial public offering (IPO) in 2017.

Keywords – Carvana Co., Carvana, CVNA, innovation, growth, used car, retailer.

Disclosure – The principals and clients of Ambastha Financial LLC do not have any position in CVNA.

Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2020 – Ambastha Financial LLC.

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