Carvana’s Rapid Growth
Carvana Co. (CVNA) has seen a meteoric rise in its stock price this year, with shares surging more than 1,100% since the start of the year. The online used-car retailer has been one of the biggest beneficiaries of the pandemic-induced shift to digital commerce, as investors reach for riskier assets.
Carvana’s Business Model
Carvana is an online used-car retailer that allows customers to buy, finance, and sell cars online. The company has a network of car-vending machines across the United States, where customers can pick up their cars after purchasing them online. Carvana also offers free delivery and a seven-day return policy.
Rise in Demand for Used Cars
The pandemic has caused a surge in demand for used cars, as people look for more affordable options. Carvana has been able to capitalize on this trend, as its online platform makes it easier for customers to buy and sell cars. The company has also seen an increase in demand for its car-vending machines, as customers look for a more convenient way to pick up their cars.
Rise in Stock Price
Carvana’s stock price has been on a tear this year, as investors have been drawn to the company’s rapid growth. The stock has more than doubled since the start of the year, and is up more than 1,100% since the start of the year. The stock has been buoyed by strong earnings and revenue growth, as well as optimism about the company’s long-term prospects.
Riskier Assets
The surge in Carvana’s stock price has been driven by investors reaching for riskier assets. The stock has been one of the biggest beneficiaries of the pandemic-induced shift to digital commerce, as investors look for companies that can capitalize on the trend. Carvana has been able to capitalize on this trend, as its online platform makes it easier for customers to buy and sell cars.
Outlook
Carvana’s stock price has been on a tear this year, and the company is well-positioned to capitalize on the shift to digital commerce. The company has seen strong earnings and revenue growth, and is well-positioned to benefit from the increased demand for used cars. The stock is up more than 1,100% since the start of the year, and is likely to continue to benefit from the shift to digital commerce.