Key Points There are no truly safe stocks, but there are plenty of risky ones.Carvana's valuation is in the stratosphere, and ...

Summary Shares of Carvana have lost nearly 65% from 52-week highs near $380, with losses accelerating in 2022. The fall helps to reduce Carvana's valuation risk, but fundamental risks remain.

Valuation Considerations: Carvana (CVNA): With a current price-to-earnings (P/E) ratio of 26,444.64, Carvana's stock appears significantly overvalued relative to its earnings.

Carvana, back in late 2022, was facing the risk of bankruptcy, as the company had limited access to cash to service its massive debt pile. On cue, Carvana stock dropped to just $4 in December 2022 ...

Carvana Stock Rout Hits 97% This Year With Used-Car Prices Crumble Stock tumbles 13% on Monday to lowest since 2017 IPO High leverage adds key risk to online car dealer’s business ...

In a note Monday, Morgan Stanley analysts maintained an underweight rating on Carvana (CVNA) shares, raising the price target to $75 from $45. This suggests a 40% downside risk from current levels.

The new price target of $85 reflects an implied 34x multiple of the company's 2025 enterprise value to EBITDA, which is near the highest multiple in the Internet sector. This valuation gives ...