Record Used Car Sales Fueled By Shift To Online Buying May Result In Carvana Break-even
The AIADA reported that Carvana Co.an online car retailer that went public in 2017 and has yet to post a post a quarterly profit, soared in early trading after it forecast record sales and breakeven earnings in the third quarter, according to a story in The Detroit News.
Shares of the Phoenix-based company rose 29% to $224.79 as of 11:11 a.m. in New York after it projected record revenue and profit margins. Carvana expects to break even on earnings before interest, taxes, depreciation and amortization, it said in a statement. The company will report financial results for the quarter ending next week on Nov. 6. The pandemic has been a boon to used-car retailers including Carvana and Vroom Inc., which have seen increased traffic on their websites as lockdowns across the country forced shoppers online and more people shun public transportation to avoid infection. Read more here (Source: The Detroit News).