Hey Guys,
I like the idea of the business model of Carvana, but after losing 96.7% of its value so far this year, it’s value keeps falling.
Carvana is laying off about 1,500 people, or 8% of its workforce, following a free fall in the company’s stock this year and concerns around its long-term trajectory.
CVNA 0.00%↑ so what is going on?
Carvana is now valued at $1.52 Billion, it could be worse right? And it could get worse before it gets better.
Think about it, Carvana, founded in 2012 and based in Arizona, took advantage of favorable conditions to market its new way of buying a car. The group's car vending machines stuck well with the pandemic, a period during which consumers wanted to avoid contact as much as possible, to limit their exposure to the virus.
Yet like so many pandemic beneficiaries, reality after the bubble have damaged the brand, perhaps beyond repair.
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