Carvana Stock Price (NYSE:CVNA)
On Friday, Carvana stock price dropped more than 9% to a new 52-week low due to negative economic indicators that put pressure on the online vehicle marketplace.
On Friday, a general selloff occurred, which corresponded with a dip for an e-commerce business situated in Arizona. The more significant decrease on Friday resulted from a higher than anticipated employment data, which looked to put expectations of a Fed pivot out of reach. This placed the most pressure on highly indebted corporations, such as Carvana (NYSE:CVNA), which led to the decline.
Carvana stock was hit due to a drop in the Manheim used car value index to 204.5, much lower than the index’s high earlier this year. The gallon prices showed a decline of 3% from the previous month and a drop of 0.1% from the levels in 2021. The dip was the first annualized downward trend since May of last year.
“Vehicles are, once again, assets that decrease in value. “When we look at the total reductions this year, we are down considerably. We now anticipate that we will conclude the year down about 14% in December,” said Jonathan Smoke, the Chief Economist at Cox Automotive. We haven’t witnessed drops of this magnitude since the epidemic and the Great Depression both started.
The Carvana stock price dropped significantly on Friday, bringing the total loss for the year to date to almost 92%. In addition, the low reached on Friday contrasts sharply with the 52-week high of $309.50.
Featured Image- Megapixl @ Actionsports
Author Shariq Khan 
