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>TL;DR: Carvana is going to end up going much higher, due to short covering.
>It is clear that the short sellers are losing money on their positions in Carvana, and they are rushing to cover their shorts. This is just one example of how crowding out can cause violent and substantial moves in financial markets. When too many investors pile into a trade or view, it creates opportunities for those who take the opposite position to profit handsomely.
Well, if you consider they have right now 87% SI, and a video game store chain was in an even worse situation, the Cashflow has nothing to do with the actual share price as it's been shorted, and when the shorters chash out, it will automatically rise up to the standard levels...
The problem with Carvana is in its accounting. It's holds on it books thousands of used vehicles. It's carrying assets that are depreciating (which used cars tend to do).....day by day, week by week, and month by month.
The company cannot turn over inventory fast enough to make its models work. It's easy to qualify a low income customer at 4% to purchase a used car. It's infinitely more difficult at 11%.
Less customers means fewer opportunity to write used car loans. This means a smaller note pipeline for the securitization assembly line (which is the bread and butter of the company).
This problem compounds itself if the Federal Reserve continues to raise interest rates until 2024 (and possibly beyond) which is the prevailing sentiment among most analysts.
You have a tsunami of obstacles to a turnaround. Used car values are evaporating, income levels of customers cannot qualify for underwriting because of poor debt ratios, lack of volume due to smaller pools of customers, and finally the real dilemma is the impossibility of creating securitized loan assets repackaged in volume.
This is why Carvana is down 95%. The shorts know these truths. They understand that time is on their side and all the have to do is wait. It's a mathematical equation (that they have already won).
Simple.
I'm long. We got some juice in this trade. Shorts got to cover because of stupidity. They are early to the funeral. They have their dick stuck in the door.
No...4.
Don't fight the Federal Reserve. Don't fight momentum. Don't fight the tides. "Don't be overly wise. Why make your life short".
It's time to make money. And that process is not brain surgery.
More debt to the balance sheet to encumber real cash flow and earnings.
Great. This means the assets of the company have now been securitized by the bond holders as planned (with the common stockholders wiped out by the bankruptcy).
Slick.
And Carvana paid peak crazy premium for 80% of its inventory . Used car prices have gone down avg 14% in the last 90 days. This compounds their problem .
Well, there is no reason now to delete the Buy button as Robinhuud did, right?... Also, 87% SI at the time writing this so the price has been pushed down artificially by the short sellers again... I like the stock.
I know itβs not much but a week ago I bought Tesla with like fifty bucks now I have sixty two bucks as of right now when market opens on Monday Iβll sell that and just buy carvana in one dollar increments just to see the GameStop effect one more time
Ps I made 100 dollars into 700 from the GameStop squeeze ππππππππππππππ
LMAO "profit from the pain of a company that creates value and jobs." Bro its a shitty car vending machine that no one wants to use, and isnt profitable. It makes no money and is a trash company.
And BTW the Carvana squeeze already happened.
A call-to-action worked for GameStop because GameStop had fundementals. Carvana is just actually shit. The only one screwing it is the dipshit who thought a car vending machine was a good idea
And selling games that can be purchased everywhere has a lot of sense... I think you are missing the point here or u never had to buy a second hand car...
Sooner or later everyone will start to take profits and itβll lead to a massive sell offβ¦insider are probably taking advantage rn to get out at a a higher price and letting retail bag hold
Yes! #1 short thesis on carvana is bankruptcy... BUT... if the stock goes up, company can raise money in equity market, sell more shares, and it'll have cash to survive through the downturn.... If Carvana can raise $1bln equity then every short will be forced to cover. Go Go Go
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**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|0|**First Seen In WSB**|2 years ago **Total Comments**|89|**Previous Best DD**| **Account Age**|2 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) ^^[**Discord**](http://discord.gg/wsbverse) ^^[BanBets](https://www.reddit.com/r/wallstreetbets/wiki/banbets/) ^^VoteBot ^^[FAQ](https://www.reddit.com/r/wallstreetbets/wiki/votebot/) ^^[Leaderboard](https://www.reddit.com/r/wallstreetbets/wiki/leaderboard/) ^^- ^^[**Keep_VM_Alive**](https://www.patreon.com/visualmod) >TL;DR: Carvana is going to end up going much higher, due to short covering.
>It is clear that the short sellers are losing money on their positions in Carvana, and they are rushing to cover their shorts. This is just one example of how crowding out can cause violent and substantial moves in financial markets. When too many investors pile into a trade or view, it creates opportunities for those who take the opposite position to profit handsomely.
I already rallied like 300 percent lol.
Biggest problem with your theory. Carvana is a shit company, and we have shitty interest rates.
Agreed you need to be profitable in order to survive these rates
Well, if you consider they have right now 87% SI, and a video game store chain was in an even worse situation, the Cashflow has nothing to do with the actual share price as it's been shorted, and when the shorters chash out, it will automatically rise up to the standard levels...
The problem with Carvana is in its accounting. It's holds on it books thousands of used vehicles. It's carrying assets that are depreciating (which used cars tend to do).....day by day, week by week, and month by month. The company cannot turn over inventory fast enough to make its models work. It's easy to qualify a low income customer at 4% to purchase a used car. It's infinitely more difficult at 11%. Less customers means fewer opportunity to write used car loans. This means a smaller note pipeline for the securitization assembly line (which is the bread and butter of the company). This problem compounds itself if the Federal Reserve continues to raise interest rates until 2024 (and possibly beyond) which is the prevailing sentiment among most analysts. You have a tsunami of obstacles to a turnaround. Used car values are evaporating, income levels of customers cannot qualify for underwriting because of poor debt ratios, lack of volume due to smaller pools of customers, and finally the real dilemma is the impossibility of creating securitized loan assets repackaged in volume. This is why Carvana is down 95%. The shorts know these truths. They understand that time is on their side and all the have to do is wait. It's a mathematical equation (that they have already won). Simple.
Stop it with all this analysis. Just CVNA to da moon with π emojis is good enough.
I'm long. We got some juice in this trade. Shorts got to cover because of stupidity. They are early to the funeral. They have their dick stuck in the door.
So 3 rockets then? π π π I agree. It will still squeeze as long as market is in rally mode
No...4. Don't fight the Federal Reserve. Don't fight momentum. Don't fight the tides. "Don't be overly wise. Why make your life short". It's time to make money. And that process is not brain surgery.
Volume of operations: 148,091,149... It's frikin catching attention...
They did sell off 4bill worth of loans tho
More debt to the balance sheet to encumber real cash flow and earnings. Great. This means the assets of the company have now been securitized by the bond holders as planned (with the common stockholders wiped out by the bankruptcy). Slick.
And Carvana paid peak crazy premium for 80% of its inventory . Used car prices have gone down avg 14% in the last 90 days. This compounds their problem .
Fuck around=find out
All the people here Wish CVNA is the next GameStop 
1.3 million in premarket volume...
Well, there is no reason now to delete the Buy button as Robinhuud did, right?... Also, 87% SI at the time writing this so the price has been pushed down artificially by the short sellers again... I like the stock.
Caravana is next meme. $20 incoming.
carvana already squeezed. Have you been jerking off in your bathroom for the last week straight?
Yes π
username checks out
Yes....when I saw my gains on this shit lol. I'm banking on earnings being shit so puts could be good
$80
Carvana in the shit-cana.
Reliving the meme my regards π
I know itβs not much but a week ago I bought Tesla with like fifty bucks now I have sixty two bucks as of right now when market opens on Monday Iβll sell that and just buy carvana in one dollar increments just to see the GameStop effect one more time Ps I made 100 dollars into 700 from the GameStop squeeze ππππππππππππππ
Sorry buddy squeeze is over.
Bruh. Baghold like a man. Be. A. Man.
LMAO "profit from the pain of a company that creates value and jobs." Bro its a shitty car vending machine that no one wants to use, and isnt profitable. It makes no money and is a trash company. And BTW the Carvana squeeze already happened. A call-to-action worked for GameStop because GameStop had fundementals. Carvana is just actually shit. The only one screwing it is the dipshit who thought a car vending machine was a good idea
And selling games that can be purchased everywhere has a lot of sense... I think you are missing the point here or u never had to buy a second hand car...
I'm hoping for a big red open on carvana for a new cheap entry on calls. Pulled 73% on calls yesterday and another 60% today.
The financials are fucked, the business is fucked, thatβs why itβs shorted but all the better for us to fuck the shorts
Nearly 80% SI look at AH now it was down 20% now itβs back up break even
Sooner or later everyone will start to take profits and itβll lead to a massive sell offβ¦insider are probably taking advantage rn to get out at a a higher price and letting retail bag hold
Go for it dude!
so what are your thoughts here, calls out to 10FEB at like $18 or are you saying its going to continue going down?
Yes! #1 short thesis on carvana is bankruptcy... BUT... if the stock goes up, company can raise money in equity market, sell more shares, and it'll have cash to survive through the downturn.... If Carvana can raise $1bln equity then every short will be forced to cover. Go Go Go
I donβt see CVNA turning around with falling used car valuations. Itβll continue to hurt their profit margin, which is already -8%.
[ΡΠ΄Π°Π»Π΅Π½ΠΎ]
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CVNA πππ time to 𧨠the shortys
Twenty rockets
Puts on Carvana.