Joe Radle
Carvana Inc. (New York Stock Exchange: CVNA) the stock fell 9% Prices hit a 52-week low on Friday as unfavorable economic data put pressure on the online auto market.
A decline in the Arizona-based e-commerce company coincided with a broader decline on Friday. Friday’s broader decline sees stronger-than-expected employment numbers Fed pivot out of reachputting pressure on heavily indebted companies like Carvana (CVNA) most difficult.
Carvana (CVNA) was also impacted by the Mannheim used car price index falling to 204.5, well below its peak earlier in the year. The price decline reflects a 3% decline from the previous month and a 0.1% decline from 2021 levels. It is the first time since May 2020 that it has fallen below the same month of the previous year.
“Vehicles are depreciating assets again. If you look at the cumulative decline this year, it’s been down significantly, and we expect it to be down nearly 14% in December,” said chief economist at Cox Automotive. , says Jonathan Smoke. “We haven’t seen a decline like this since the outbreak of the pandemic and the beginning of the Great Recession.”
Friday’s fall in Carvana (CVNA) shares led to year-to-date losses of about 92%Friday’s low also contrasted with the 52-week high of $309.50.
Read Wedbush’s review of Carvana’s latest credit deal.