Carvana Climbs to 7th on WSB as Insider Sales and Profit Drop Stir Concerns
1min read Carvana recently secured the 7th position on the latest WallStreetBets (WSB) ranking, marking a notable rise of 27 places from the previous day. Despite this positive momentum in popularity, the company's stock experienced a minor dip of 0.69%. Nevertheless, it managed to hit an intraday peak, the highest since January 2022.
In the third quarter of the 2024 fiscal year, Carvana reported a total revenue of $10.126 billion for the first three fiscal quarters, up 21.31% from the $8.347 billion in the same period last year. However, the net profit for the same timeframe was $245 million, a decrease of 30% compared to the previous year's $350 million. This resulted in basic earnings per share dropping significantly from $5.24 to $1.09.
Carvana has been actively reshaping the used car buying and selling experience through its innovative, customer-friendly e-commerce platform. The company offers a comprehensive selection of vehicles and emphasizes transparent pricing and smooth, stress-free transactions. Customers can research and choose vehicles, explore financing and warranty options, and arrange for vehicle delivery or pickup—all from their personal devices using Carvana's proprietary 360-degree imaging technology.
However, recent insider trading activity has caught attention. On October 23, 2024, significant transactions were disclosed, notably by shareholder Garcia Ernest C. II, who sold over 40,000 shares in the preceding days. Such activities might give investors reason to scrutinize corporate governance and insider confidence at Carvana.
