Yahoo Finance Live examines Carvana shares amid a slowdown in used car sales and recent plans to lay off 7% of its workforce.
- All right. My pick today is Carvana. Shares off just about 5%, losing nearly all of its value so far this year, with the stock off more than 96% since January 1. Now, the latest-- the company is cutting 1,500 jobs as it looks to trim costs amid a slowdown in the used car market. The layoffs reportedly amount to about 7% of the company's workforce.
Prices of used cars have declined for about five months in a row. That has Wall Street a bit worried. Earlier this month, S&P Global Ratings revising its outlook to negative from stable on the stock. Jared, I don't think that caught anyone by surprise given the performance that we've seen year to date. But, certainly, the used car market has been declining. This underperformance, though, by Carvana is really something.
- Yes. We were just showing a year to date. And let me just show you on the YFi Interactive Carvana chart. This is going to be since their IPO day. Let me see if I can pull up this max chart here. And like so many other stocks over the pandemic, we've seen that huge what Brian Sozzi calls the bulging bicep chart formation pattern. It is right there, and probably within 2018 levels right now.