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Oracle Corp’s (NYSE: ORCL)...

Oracle Corp (NYSE: ORCL) falls down to its knees, share dropped over 12.15%...

RTX Corp (NYSE: RTX)...

RTX Corp (NYSE: RTX) experienced a notable decline of -7.22%, amounting to $6.03...

GameStop Corp. (NYSE:GME) Quarter...

GameStop Corp. (NYSE: GME) to announce its second quarter fiscal 2023 results after...

Advanced Micro Devices (NASDAQ:AMD)...

Shares of Advanced Micro Devices (NASDAQ:AMD) drops 0.38% in afterhours in last trading...
HomeStock InsidersCarvana Co.’s (NYSE:...

Carvana Co.’s (NYSE: CVNA) Faces Lower Targets by Wall Street Analysts

As online used-car dealer, Carvana Co.’s (NYSE: CVNA) moved up 1.11% to $8.21 in pre trading session on Friday as the share price is spiraling out of control, Wall Street analysts are lowering their targets, and they are warning that things could get worse.

Analysts’ average price expectations for the firm struggled to keep up with its astonishing 97% share price decline this year. That changed this month, and in the last week alone, at least three analysts cut their price forecasts and downgraded the company, warning that the worsening economy and the auto dealer’s high debt burden might have even more disastrous effects.

Robert W. Baird analyst Colin Sebastian wrote in a note on Tuesday that In order to reflect a larger possibility of insolvency by 2024 without a quicker decrease in operational expenses and/or access to considerable capital, they are decreasing their price objective from $30 to $7.

The stock’s average price estimates have now fallen roughly 60% from where they were at the end of October and by 94% since the start of the year. Early this month, Carvana announced its third-quarter earnings, setting off the most recent avalanche in both its shares and analyst projections. The company noted a deteriorating economy and declining demand for pre-owned vehicles as the reasons behind the quarterly loss and revenue significantly falling short of Wall Street expectations.

According to Cowen analyst John Blackledge, “we do not see industry headwinds abating in the near term given weakening consumer sentiment and interest rates that will likely remain above previous norms for a prolonged period of time.” He reduced the stock’s recommendation from buy to hold and decreased the price objective from $55 to $10.

A perfect storm has taken Carvana off guard. Used-car demand had a huge increase during the epidemic days when auto industry was suffering from debilitating supply bottlenecks, which caused used-car prices to rise. Prices of used cars have been drastically declining from their high this year as supply chains began to stabilize, reducing the profits of retailers like Carvana.

In the meanwhile, consumers are reluctant to make major purchases due to consistently high inflation and rising borrowing rates, particularly in light of the possibility of a recession. As a result, demand is also suffering.

 

Oracle Corp’s (NYSE: ORCL) Cloud Business Faces Headwinds: What Lies Ahead

Oracle Corp (NYSE: ORCL) falls down to its knees, share dropped over 12.15% or $15.21 to trade at $111.50 in pre trading session on...

RTX Corp (NYSE: RTX) Updates 2023-2025 Outlook amid Engine Part Challenge

RTX Corp (NYSE: RTX) experienced a notable decline of -7.22%, amounting to $6.03 per share, bringing its current trading price to $77.45. The company,...

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GameStop Corp. (NYSE: GME) to announce its second quarter fiscal 2023 results after the market closes today. Shares were slightly down in the pre-trading...

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Onsemi (NASDAQ: ON) Approves New Share Repurchase Program with Authority To Repurchase Up To $3B

Onsemi (NASDAQ:ON) has released its fourth-quarter and fiscal-year 2022 results. Revenue of $2,103.6 million increased 14% year on year in the fourth quarter. Fourth-quarter GAAP gross margin of 48.5% increased by 343 basis points year on year, while non-GAAP...

Credit Suisse Group AG (NYSE: CS) Is Marketing Its First Boston Investment Banking Unit

Credit Suisse Group AG (NYSE: CS) rose over 0.49% in pre trading session on Tuesday as the firm is marketing its First Boston investment banking unit to investors as a "super boutique," with revenue expected to rise to as...

NextNav Inc. (NASDAQ: NN) And STMicroelectronics (NYSE: STM) Joins Hand with Joined NextNav Certified Barometer Program

STMicroelectronics (NYSE: STM) has joined the NextNav Certified barometer program, according to NextNav Inc. (NASDAQ: NN).NextNav Certified, which will be available in 2021, validates sensor performance in real-world operating scenarios by establishing standardized measurement benchmarks based on independent performance...

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