Carvana short sellers suffer $1 billion loss after the used-car dealer's stock surged more than 400% this year
, short positions, which make up around 56% of the Arizona-based company's outstanding shares, have racked up losses amounting to $1.04 billion so far in 2023, per S3 Partners.
The setback to short sellers arises from Carvana's staggering stock-market performance. The shares have surged about 422% this year, buoyed by the company's cost-cutting measures in response to the Federal Reserve's aggressive interest-rate increases. On Thursday alone, the stock of the e-commerce company for buying and selling used vehicles jumped 56% after it revised upward its second-quarter results to exceed Wall Street forecasts.
"Our record-breaking 2023 first quarter is evidence that our strategy is working, and our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected," Carvana CEO Ernie Garcia said in a"The team's persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan," he added.
Carvana said it expects total gross profit per unit to hit above $6,000 in the second quarter of 2023.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Photos: Army’s 11th Airborne Division marks Alaska activation anniversary with jumpThe Army’s 11th Airborne Division Arctic Angels on Tuesday celebrated the anniversary of the division’s activation in Alaska with Angel Rendezvous Week activities at Joint Base Elmendorf-Richards in Anchorage and Fort Wainwright in Fairbanks.
Read more »
Album of the Week | Jason Isbell and the 400 Unit: WeathervanesOn their eighth album, Jason Isbell and the 400 Unit (JasonIsbell) find beauty and rage in the everyday. Read ellen_a_johnson's review of 'Weathervanes,' our Album of the Week:
Read more »
Transportation, highway upgrades in limbo as Arizona lawmakers debate Proposition 400A half-cent sales tax that funds roadways will expire in 2026 unless voters continue it, but there's a caveat. Legislators have to first allow a vote.
Read more »
UH's Sydni Townsend hitting her stride in 400 hurdles before NCAA track meetSydni Townsend broke the school record set by her coach Sandra Glover twice in last...
Read more »
Visitors enjoy Northwest Indiana beach despite air quality warningsThe smoke impacting the air quality stemmed from more than 400 wildfires burning in Canada.
Read more »
Carvana rallies 28% on stronger-than-expected Q2 guidance figureCarvana Co. stock is up 27.8% in premarket trades on Thursday after the car seller issued an estimate for second-quarter adjusted earnings before interest,...
Read more »