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A comment on Is Carvana going out of business? The 'Amazon' of cars tumbles. Parent comment

Re:Is Carvana going out of business? The 'Amazon' of cars tu... by yccs27 on Tuesday December 06, 2022 @02:59AM (#33876982)
> You gotta love how a roughly %3 decrease in year-to-year revenue leads to a %97 decrease in the stock price and an increase in the net loss from ~$30 million to ~$300 million

It's not that surprising. Revenue is worth nothing without a healthy margin, and that's where Carvana seems to have a problem. This quickly turns a company which could be profitable if it didn't invest as much into the future, into a company that is bleeding money and might be headed for bankruptcy. It explains a big part of the change in valuation.

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Re:Is Carvana going out of business? The 'Amazon' of cars tu... by c4ptnjack on Tuesday December 06, 2022 @03:41AM (#33877217)
Not surprising, just indicative of how insane and wild the bull market got over the last decade.

I can't help but think that a lot of businesses which could've ended up as profitable, sustainable market leaders over the long term have been, or will be, decimated by this misalignment of investment priorities. .

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