After featuring the success of our Zombie Stocks List in his June 2022 article, Fortune’s Will Daniel revisited our Carvana (CVNA: $5/share) call in this tweet from November 4, 2022:
“Watching Carvana today…and thinking about New Constructs’ David Trainer.
He did warn you. Since publication of this article in late June, CVNA is down more than 70%.”
Carvana has fallen even further since then. In fact, since our original Danger Zone report in April 2019, Carvana’s stock is down 92% and has outperformed the S&P 500 as a short by 125%. See Figure 1. See all our research on Carvana here.
Figure 1: Danger Zone Performance: From Date of Publication Through 12/15/22
Sources: New Constructs, LLC
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This article was originally published on December 16, 2022.
Disclosure: David Trainer, Kyle Guske II, Matt Shuler, and Italo Mendonça receive no compensation to write about any specific stock, sector, style, or theme.