The Impact of Carvana Stock Surge and Short Sellers' Losses on the Financial Market
Carvana Stock Short Sellers Face $3.9 Billion Losses as CVNA Soars
With the recent impressive surge in the price of shares of online used-car dealer Carvana (NYSE: CVNA) after the release of a better-than-expected Q1 earnings report, their short sellers have accumulated face-melting losses, with figures nearing $4 billion in one year.
Carvana stock short-seller losses
As it happens, the skyrocketing CVNA share prices have pushed the stock’s annual advance to surpass 1,500%, extending short-seller losses to a whopping $3.9 billion, with just the recent daily price increase costing them over $860 million in paper losses, according to a Bloomberg report on May 2.
Carvana father-son duo profit
The 3,000% surge from historic lows has brought Ernie Garcia II and Ernie Garcia III, the father-son duo behind the company, over $11 billion in combined net worth since December 2022. Specifically, the one-day bullish rally for the price of CVNA shares has pushed the older Garcia’s fortune to $10.9 billion from a 2022 low of $3.1 billion, while his son’s net worth climbed to $3.8 billion.
Carvana stock price analysis
Currently, the CVNA stock is changing hands at the price of $117.05, which suggests a 33.77% gain in the last 24 hours, an advance of 34.43% across the previous seven days, adding up to the 40.89% increase on its monthly chart. Wall Street experts remain divided on Carvana, with average price targets reflecting caution amidst the stock's recent surge.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.