Carvana (CVNA) is an internet based automotive retail company that has been knocked 22% off its lofty January heights, but remains tremendously overvalued compared to its segment competitors (Carmax, Autonation, Lithia).
Carvana also came under fire last month after a short seller report by Gotham City Capital questioning their sub-prime lending and accounting practices.
Now CVNA has given off a strongly Bearish technical signal as it's 20 day EMA crossed its 50 day SMA in what is often called a "Bear Cross" or a "Death Cross." (Can I say that here? Do I have to write Unalive Cross?)
I am the first to admit that technical analysis is about as accurate as tarot readings or Voodoo magic. However, the last 2 times CVNA's moving averages crossed like they did today the stock fell dramatically over the coming weeks.
In March of 2025 CVNA went through a Bear Cross and fell from $220 to $162.
In October 2025 CVNA fell from $357 to $285 after a Bear Cross.
As of 4pm today (2/5/2026) CVNA traded at a lofty $383 a share, a significant drop off from their $490 peak after inclusion in the S&P500, but still a staggering 78 times their reported annual income.
Between geopolitical turmoil, risk-off selling, the recent short seller report, and now this clearly bearish technical signal, it seems highly likely CVNA will continue their precipitous fall.
As I have posted before, I have current open put option positions against CVNA and intend to continue to short CVNA stock for the immediate future. I may open or close other positions with no prior notice.
Year to date this short trade is up over 34%, and I have no intention of letting off CVNA until their market cap approaches a more appropriate enterprise value.
I am not a Financial Advisor. This is not Financial advice. I am a 14 yr automotive veteran and a 15 year stock and options retail trader.
Thanks for reading
BFLO-Retail
[https://www.reddit.com/r/stocks/comments/1phs4pg/carvana\_cvna\_is\_highly\_fraudulent/](https://www.reddit.com/r/stocks/comments/1phs4pg/carvana_cvna_is_highly_fraudulent/)
[https://www.reddit.com/r/stocks/comments/1q4v9cg/carvanas\_cvna\_accounting\_voodoo\_amid\_questionable/](https://www.reddit.com/r/stocks/comments/1q4v9cg/carvanas_cvna_accounting_voodoo_amid_questionable/)
[https://www.reddit.com/r/stocks/comments/1qphrwa/carvana\_cvna\_stock\_dives\_after\_short\_seller\_report/](https://www.reddit.com/r/stocks/comments/1qphrwa/carvana_cvna_stock_dives_after_short_seller_report/)
[https://www.reddit.com/r/stocks/comments/1qvx3a3/carvana\_stock\_is\_down\_40\_today\_what\_is/](https://www.reddit.com/r/stocks/comments/1qvx3a3/carvana_stock_is_down_40_today_what_is/)