Good morning, folks. I’ve been asked several times for an update on $CVNA recently.

What follows is not trading/investment advice, and I am short.

What do you see below?

Nothing is more dangerous to a growth story than a slowdown in growth, and it’s my opinion that in the coming quarters, the chart above will morph into a bell curve.

Details on why in the thread below: https://twitter.com/DRuizG80/status/1292114663803502592?s=20

On 9/17, Carvana announced the following:

Carvana is proud to announce today that it expects to achieve company records in performance across several important metrics in Q3 2020, including:

* Retail units sold
* Total revenue
* Total gross profit per unit
* EBITDA margin

Carvana shares “inventory units available on website” data in their quarterly reports and defines that data as:

“We define inventory units available as the number of vehicles listed for sale on our website on the last day of a given reporting period.”

The chart below illustrates that number and the percentage of that number sold in the following quarter. Carvana’s inventory dropped by 51% from the end of Q1 to the end of Q2.

To set a company record in retail sales by just one unit, they will have to sell 334% of the inventory they had at the end of Q2.

Folks, that’s something that the company has NEVER done before.

I don’t know about you, but I’m looking forward to the magic trick yet to be revealed when they report their Q3 earnings…

Have a great weekend!

By the way, if you enjoy this thread and the insight shared on this account, you’ll have to put up with threads like the one below every once in a while.

It is what it is, and I believe it to be far more important than auto research. https://twitter.com/DRuizG80/status/1319479605103718400?s=20