What Happened?
Shares of online used car dealer Carvana (NYSE: CVNA) fell 11% in the afternoon session after short seller Hindenburg Research published a report accusing the company of "accounting manipulation and lax underwriting." In response, Carvana called the report "intentionally misleading and inaccurate."
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Carvana? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Carvana’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. But moves this big are rare even for Carvana and indicate this news significantly impacted the market’s perception of the business.
Carvana is down 9.1% since the beginning of the year, and at $181.32 per share, it is trading 30.5% below its 52-week high of $260.80 from November 2024. Investors who bought $1,000 worth of Carvana’s shares 5 years ago would now be looking at an investment worth $1,955.
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