Carvana's (CVNA) stock closed 6% higher on Wednesday after soaring as much as 27% during the session, triggering a volatility halt.
It wasn't very long ago that online used car retailer Carvana (NYSE: CVNA) was looking as though it was heading off to the junkyard to be sold for scrap. A lack of inventory, soaring used car prices, and rising interest rates conspired to run the industry off the road and for Carvana's stock to spontaneously combust. Has Carvana pulled itself out of the ditch at last, or is it just careening to the cliff on the other side of the road?
Aggressive interest rate hikes by the Federal Reserve and other major central banks to help cool inflation that was at 40-year highs deserve some blame as they quickly shrunk valuation multiples for many stocks. Does this renewed optimism make Carvana a screaming buy right now? Carvana has been one of the top trending tickers on Reddit, the site that helped spur the meme-stock craze nearly two years ago.