Carvana (CVNA)

Post by **admin** » Mon Jan 06, 2025 5:21 pm

Carvana (CVNA) shares ripped to new highs as investors expected interest rates to plunge in 2025. Now that outlook is in jeopardy.2023 and 2024 refinancing a ticking time bomb of short-term debt
Carvana’s plan worked, except it was contingent on one thing… rates continuing to lower in 2025 and 2026.The Fed’s recent shift in sentiment on rate drops in 2025 has cut the expected number of rate cuts in half, seeing the Fed’s primary lending rate only dropping 0.5% during the year instead of 1.0-1.25%.Higher rates will take their toll on Carvana in two ways.company will see fewer customers
restructured debt will now see pressure from rates not continuing their decline.Watch for comments from the company during their February 20 earnings call.
investors should remain cautious with a price target of $125.