Posted on 12/07/2022 11:10:44 AM PST by Presbyterian Reporter
Shares of Carvana plummeted by more than 40% in Wednesday morning trading after the embattled online used car retailer’s largest creditors signed a deal binding them to act together in negotiations with the company.
The pact, as first reported by Bloomberg, includes creditors such as Apollo Global Management and Pacific Investment Management that hold around $4 billion of Carvana’s unsecured debt, or about 70% of the total outstanding. The agreement will last at least three months.
(Excerpt) Read more at cnbc.com ...
52 Week Range 3.55 12/07/2022
274.35 12/13/2021
If they do have to sell off their assets it will be interesting to see how their vending machines get repurposed.
Prepare yourselves for the implosion of many American businesses in the next five or so years. They are not in business to increase shareholder wealth.
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OR
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wait for it
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a used car dealership.
When you are paying more to buy a used car than new cars sell retail because you let a computer algorithm decide what to pay, what could possibly go wrong?
When you think a fancy “vending machine” is your “hook” to sell cars…. What could to wrong?
I suggest use them as prisons for democrats involved in election fraud, or Russia hoax or Jan 6 hoax.
The model worked, well for the son and father to clean out the company.
https://www.sgtreport.com/2020/08/carvana-a-convicted-felons-personal-piggy-bank/
Carvana had a long trail of issues in Florida over several years. People would buy cars and never receive their permanent tag/title. When their temporary tag expired, they would be cited by law enforcement. This went on for some time until the state got involved. FL threatened to suspend Carvana’s dealer license.
Yep. Cars are one if those purchases I have to see, smell touch and especially drive.......for some reason I’ve always considered buying an automobile FAR more stressful than purchasing a home........maybe it’s because many car salesman I’ve encountered have been detestable, untrustworthy and deceitful......but hey, I don’t mean that in a BAD way. 😏
$360/sh on 8/13/21.
Today it’s $3.90.
They wanted to build a couple hundred acre lot in a town near me. Imagine what an empty asphalt lot would do to that area now. I am glad they were told to go elsewhere.
And they say Bitcoin sucks…lol.
Never heard of this Carvana
Free money made business success seem effortless. Not so much now and money is still so cheap its crazy. I remember 14% money in 1982. A company had to turn a healthy profit to survive.
You nailed it.
It’s not just “gee whiz” type of companies like Carvana, who is doing something old by making it look new and convenient.
It’s older established companies like Walmart, Target, Walgreens, etc., who are facing real issues.
The CEO of Walmart was on CNBC this week explaining in a politically correct way, unless shoplifting is curtailed, prices will rise, and stores will be closed leaving a massive number of people unemployed.
My Brother in law has a Chrysler dealership. These on line dealers were giving his dealership headaches. Pennsylvania passed legislation banning their access to market in the state, or at least tried to. I’m not sure the final outcome?
You are exactly correct.
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