The used car market is experiencing a dramatic divergence as traditional retailer Carmax plunges to 52-week lows while digital disruptor Carvana continues its remarkable rally. High interest rates and loan losses are hammering Carmax’s traditional business model, while Carvana’s online-first approach attracts younger buyers and drives record growth, creating a tale of two automotive retailers navigating the same challenging economic landscape.
about Carmax Plunges, Carvana Soars: Used Car Market Split
Carvana
Carvana’s Debt Risk Threatens Meme Stock Surge
Carvana’s spectacular stock recovery from near-bankruptcy to meme stock darling faces a hidden threat. A Morningstar report reveals alarming delinquency rates in the company’s older subprime auto loan portfolios. While recent financials show strong performance, these legacy loans could undermine investor confidence in the high-flying retailer.
about Carvana's Debt Risk Threatens Meme Stock Surge