Carvana has continued to see more and more growth as the company focuses on changing how consumers buy their used vehicles according to Mike Cintolo, Editor from Cabot Top Ten Trader.
Carvana primarily sells all of their used vehicles on the internet, but not like other companies do. With a huge inventory of over 10,000 cars to choose from, detailed photos of every vehicle, and a car history without any accidents or crashes. They also offer test drives for up to seven days as well as home delivery in some markets that can be as quick as next day.
The company's stock price has been up lately as investors see a potentially fruitful future due to revenues continuing to rise, car sales improving by 105%, gross profit per vehicle rising 32%, and overall increases in Carvana's market shares.
Currently the company is continuing to see their market share at around 2% in the Atlanta area while their cost to bring in new customers has fallen. This makes it easier for Carvana to expand into new markets and expects to find similar success. Toward the end of 2017, Carvana was in 44 markets around the United States, but as of the end of 2018 can boast being in over 85 markets. While all these expansions cost the company more money, Carvana and its investors expect more potential growth in the future.
Carvana's stock prices started at around $25 per share in the beginning of last year, reached a high price of $72 in the beginning of fall, and steadily feel down to $29 in winter as the rest of the market also suffered.
Since that winter low the stock hasn't really recovered. However, the stock has stayed at around $30 consistently, it sees a high volume of trading, and features consistent growth even when the market doesn't. Carvana still has issues and problems, including the cost of all their expansions, but the future holds plenty of potential.