Carvana (CVNA) ranks among the most difficult ideas to call. Right now, CVNA stock is listed as a 56% Sell from the Barchart Technical Opinion indicator, a consequence of the security losing nearly 19% of value on a year-to-date basis. Fundamentally, the weakness in the broader consumer economy plays a significant role in the underperformance.
At the same time, the economic backdrop plays a somewhat cynically positive role for CVNA stock. Because households are strained from rising costs of living, used cars — which of course are Carvana’s specialty — have dominated the mainstream discourse. This dynamic allows the company to steal market share from traditional brick-and-mortar dealers. Additionally, Carvana’s digital interface aligns with young buyers’ preferences.
