Is Carvana Making Money? — Market Mad House

The Carvana Co. (NYSE: CVNA) is shaking up auto sales with its car vending machines and fast delivery.

In fact, Carvana (CVNA) claims to have sold 177,549 vehicles online in 2019. Furthermore, Carvana claims Carvana.com offers 25,000 vehicles to customers. Carvana claims its year-to-year retail unit sales grew by 82% to 50,370 between 2018 and 2019.

Carvana attracts buyers with such features as a seven-day money backup guarantee, real-time financing, and delivery. To me, Carvana sounds like the perfect business for the coronavirus age because it eliminates the need to go to a car dealership.

Does Carvana Make Money?

Carvana (NYSE: CVNA) grows fast, but it is not making money. Carvana reported a -$89.73 million operating loss on 30 June 2020. The quarterly operating loss shrank from -$137.29 million on 31 March 2020 and -$99.12 on 31 December 2019.

However, Carvana’s quarterly gross profit grew from $138.42 million on 31 March 2020 to $150.21 million on 30 June 2020. In contrast, Carvana’s quarterly common net loss shrank from $-59.89 million on 31 March 2020 to -$40.83 million on 30 June 2020.

Yet, Carvana’s quarterly revenues grew from $1.098 billion on 31 March 2020 to $118.3 billion on 30 June 2020. Stockrow gave Carvana a…