After trading flat for the first few weeks of the year, Carvana stock began to take off after its fourth-quarter earnings report at the end of February. The company reported another round of blockbuster growth, with revenue up 121% to $584.8 million, marking its 20th straight quarter of triple-digit revenue growth. The stock rose 7.3% on the news and marched higher over the following weeks as the company made a move that allows it to resell its loans and opened up in a number of new markets.
A short squeeze also seems to have contributed to the stock's gains through March and April, as the money-losing company has been popular with short-sellers. Currently, 53% of the stock is sold short, which helps explain its volatility. The stock pulled back in May as its first-quarter report wasn't enough to keep the rally going in spite of revenue jumping 110% to $755.2 million, and fell again later that month when the company announced a secondary offering.
After trading mostly flat for the next two months, shares spiked on a strong second-quarter report in the beginning of August as revenue easily beat estimates at $921.2 million, surging 108% to $986.2 million. The report showed the company's blistering growth continuing, bucking expectations of a slowdown.
Shares fell in September on a broad-based sell-off in growth stocks as the WeWork IPO collapsed, but then Carvana finished the year on a strong note, as it rebounded from an initial sell-off on its third-quarter earnings report, which included 105% revenue growth to $1.095 billion, its 23rd straight quarter of triple-digit revenue growth.
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