It was only about nine months ago that Carvana was one of the darlings of the stock market, riding high amid seemingly insatiable investor demand for businesses that enabled people to shop, work, exercise and entertain themselves without leaving their homes.
What’s more, automakers were hit by crippling supply shortages, causing production halts and making new cars scarce. Demand for used vehicles soared as a result, a further boost for Carvana.
These forces combined to push Carvana shares above $370 in August, from below $30 in March 2020. And yet, the decline has been even sharper, with the stock losing more than 90 percent of its value in about half the time.
The company is far from the only pandemic-era darlings facing a rude awakening. Peloton Interactive Inc., the fitness company, has slid about 60 percent this year, while Netflix Inc.’s shares have retreated 70 percent.