Carvana Stock Is Up 228% on the Year, but a New Red Flag Just Emerged

One of the hottest stocks this year has been Carvana (NYSE: CVNA), which has risen over 228% in 2024. The online auto retailer looked like it was on the brink of bankruptcy a couple of years ago, but it has engineered a solid turnaround.The company has been posting some strong quarterly results that have encouraged investors. However, a new red flag has recently emerged. Let's take a look at the used car sales specialist and why investors might want to avoid its stock at the moment.Since its initial public offering, Carvana has been a divisive stock, loved by bulls and hated by bears. The company grew rapidly in its early days, expanding into new markets at a brisk pace. However, it was also burning through a tremendous amount of cash in the ramp-up process, leaving its balance sheet deep in the red.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool