Carvana (CVNA) stock has been on a steady downtrend since mid-2021 peaks, with declining earnings keeping the online used car retailer in a stock price rut. Slowing demand and cooling prices for used cars also paint a murky road ahead for Carvana, as the company’s growth during the pandemic was spurred by the surge in used car sales and prices throughout the height of COVID.
Despite these macroeconomic headwinds and Carvana’s recent lackluster performance, however, Bank of America (BAC) remains optimistic about the company’s business model.
“Together with the move to acquire ADESA and the resulting expensive debt raise, investors appear to have largely given up on this once high flyer (the stock is now down 90% from its peak in August ’21),” a May 18 BofA Global Research report reads. “We, however, still believe in Carvana and its opportunity for one glaring reason: it is a fundamentally better way for consumers to shop…
