**Looking back on 2023**, Carvana’s stock fell from split-adjusted $69 to $.81 (that is 81 cents). What caused this downhill plummet?
**Management will tell you it was growing pains.** Over leveraged debt, inefficient process, and operational challenges.
**The reality is the near extinction of Carvana stemmed from inflation**. As core CPI hit 5-6% Carvana’s profit on loans and vehicles dried up.
The car business is cyclical and highly competitive, but Wall street has priced Carvana like a tech stock with a x42 price to earnings ratio.
If Consumer CPI continues it’s parabolic rise, the math on Carvana does not work.
**Positions and Disclosure:** I am a retail trader and not a financial advisor. I hold open puts against Carvana
Bflo-Retail