Carvana: Impressive Turnaround Coupled with Dilution Risk

5 days ago

"Stock number five is a very interesting one. Carvana went from near bankruptcy in 2022 to posting record revenue, with over $13 billion in revenue and 38 million in profit in Q2 2025. They improved operations by acquiring Adessa, which boosted efficiency, yet the company continues to dilute its shareholders. Analysts expect significant growth, projecting it could sell millions of cars in the coming years, but the current price already reflects these high expectations. If you’re considering investing in Carvana, it’s crucial to understand both its impressive turnaround and the inherent risks of a cyclical, high-risk industry."

The commentary on Carvana outlines its dramatic turnaround from near collapse to record revenue, while warning investors about ongoing share dilution and cyclical risks in the used car market. This serves as a cautionary perspective for those tempted by its growth story.

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