Just based on the near-term performance of Carvana (CVNA), it appears to have the makings of a powerful meme stock. Once the dust settled on the June 8 session, shares of the online auto retailer gained slightly over 56%. In the trailing five days, CVNA stock returned nearly 62% while on a year-to-date basis, it features a take-no-prisoners mentality, skyrocketing over 423%.
It’s a remarkable paradigm shift considering that in December of last year, Barchart’s Will Ashworth reported on the myriad troubles affecting Carvana. At the time, Ashworth mentioned that Wedbush Securities analyst Seth Basham downgraded CVNA stock to underperform. This assessment was based on the belief that “…any debt restructuring leading to bankruptcy would render Carvana’s shares worthless overnight.”
