![]() ![]() ![]() ![]() The once-mighty home goods retailer is now cheaper than it was three decades ago. With heavy volatility and almost half of its float sold short, Bed Bath & Beyond is the quintessential meme stock. But it is unclear whether that is possible without some type of restructuring or equity dilution, which could dramatically reduce current investors' claims on the company's future earnings in the event of a recovery.īed Bath & Beyond: 47% of the float sold short If Carvana can survive these current headwinds, it could return to growth because of cyclical trends toward online shopping. At the end of September, the company had just $316 million worth of cash and equivalents left, compared to a whopping $6.6 billion in long-term debt. While Carvana's third-quarter revenue fell by just 3% year over year to $3.4 billion, its net losses spiraled from $68 million to $508 million, highlighting the disastrous impact macro headwinds are having on margins. However, now the used car bubble has burst as the Federal Reserve raises rates and the new car supply returns to normal levels. The business peaked at the height of the COVID-19 pandemic when used car prices soared amid supply chain shortages in the new car market and low-interest rates. Going public through an initial public offering (IPO) in 2017, Carvana soon became a Wall Street darling because of its unique business model, which disrupts the used car market with an online-only strategy. ![]()
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