Arrow-right Camera
The Spokesman-Review Newspaper

The Spokesman-Review Newspaper The Spokesman-Review

Spokane, Washington  Est. May 19, 1883
Cloudy 24° Cloudy
News >  Business

Carvana stock rout hits 97% this year with used-car prices crumble

Nov. 21, 2022 Updated Mon., Nov. 21, 2022 at 10:35 a.m.

The logo for Carvana is displayed in an arranged photograph taken in New York on June 11, 2020.   (Gabby Jones/Bloomberg )
The logo for Carvana is displayed in an arranged photograph taken in New York on June 11, 2020.  (Gabby Jones/Bloomberg )
By Esha Dey Bloomberg

Online car dealer Carvana’s shares are careening toward an all-time low as investors grow more concerned about the continuing decline in used-vehicle prices.

The price of the company’s stock fell as much as 12% to $7.06, on pace to close at a record low.

Carvana, which was once touted as a disruptor in the used-car dealer industry for its online sales, has seen recession-wary investors flee this year from risky and expensive growth stocks.

Carvana’s shares have plummeted 97% so far this year as potential buyers grapple with higher interest rates and stubborn inflation.

“As used car prices fall, we believe that Carvana will struggle to make a profit on vehicles previously purchased at high prices,” Argus Research analyst Taylor Conrad wrote in a Monday note, downgrading the rating on the stock to sell from hold and noting the company is highly leveraged. “We believe that the shares are overvalued.”

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Active Person

Subscribe now to get breaking news alerts in your email inbox

Get breaking news delivered to your inbox as it happens.