According to data from analytics firm S3 Partners, short sellers of Carvana (CVNA) have incurred losses of over $2 billion this year as the online car retailer’s stock has surged more than 1000% year to date.
On Wednesday, the stock soared 40% to close at $55.80 after Carvana announced a debt exchange deal and released its second quarter results. In late 2022, the stock was trading below $4.
Ihor Dusaniwsky, managing partner at S3 Partners, stated, “The CVNA short squeeze is going to tighten even more with [Wednesday’s] upward price action. Expect more short covering today and over the next few days as short sellers look for exit points to trim their exposure in a very unprofitable trade.”
Short sellers suffered losses of approximately $646 million in Wednesday’s rally, bringing their mark-to-market losses since the start of 2023 to approximately $2.18 billion, as per S3’s data.
The stock’s daily rallies this year have been reminiscent of the…
2023-07-19 15:34:43
Post from finance.yahoo.com
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