Carvana's Giant Crash: Before Betting on a Turnaround, Check Out This Stock First

By Jason Hall and Tyler Crowe – Apr 16, 2023 at 5:07AM

NYSE: CVNA

Carvana

Market Cap

$14B

Today's Change

(-2.83%) -$3.41

Current Price

$117.00

Price as of May 10, 2024, 4:00 p.m. ET

Carvana is struggling with cash burn and a mountain of debt. There's another used car company that's already making money and making the transition online.

Carvana (CVNA -2.83%) has been an abject disaster for investors, with skyrocketing cash burn and a mountain of debt it's struggling to deal with, and a stock down 97% from its high. Instead of buying Carvana and hoping for a turnaround, Motley Fool contributors Jason Hall and Tyler Crowe discuss Lithia Motors (LAD 0.08%), an old-school car dealership owner that's proven it can make money while making the pivot to the tech-focused online experience car buyers want today.

*Stock prices used were from the afternoon of March 28, 2023. The video was published on April 16, 2023.

Jason Hall has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Jason Hall is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.