Latest news with #Carvana
Yahoo
17 minutes ago
- Business
- Yahoo
Dear Opendoor Stock Fans, Mark Your Calendars for August 5
Opendoor Technologies (OPEN) has long been one of the market's hardest-hit stocks. Once a standout during the pandemic housing boom, the online home-flipping company collapsed under the weight of rising interest rates and a frozen housing supply. Most homeowners are still locked into rock-bottom mortgage rates and have little incentive to sell, leaving Opendoor's business model badly exposed. OPEN stock has nosedived 94% from its 2021 peak. But 2025 brought a dramatic shift. In mid-July, hedge fund manager Eric Jackson, best-known for his early bullish call on Carvana (CVNA), publicly threw his support behind Opendoor on X. Citing deep cost cuts and long-term upside, Jackson's endorsement lit a fire under OPEN stock and brought a wave of retail attention. What followed was a classic meme stock surge. Online forums lit up with Opendoor chatter, triggering a massive short squeeze as bearish traders rushed to cover their positions. More News from Barchart Here's What Happened the Last Time Novo Nordisk Stock Was This Oversold As SoFi Raises 2025 Guidance, Should You Buy, Sell, or Hold SOFI Stock Here? Earnings Will Be 'Worse Than Expected' for UnitedHealth. How Should You Play UNH Stock Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! In the past month alone, OPEN stock has delivered a massive triple-digit return. But despite the surge, the company's fundamentals remain largely unchanged. Opendoor is still a cash-burning, low-margin business with limited near-term growth. So, with its second-quarter earnings report around the corner, here's a closer look at this name. About Opendoor Stock Opendoor is a leading digital platform for residential real estate transactions. Since 2014, the company has set out to become the Amazon (AMZN) of the housing market through iBuying, a model where homes are bought and resold via an online marketplace. Opendoor went public through a special purpose acquisition company (SPAC) merger in late 2020 and currently has a market capitalization of roughly $1.7 billion. The stock has been in hot water for quite a while, but the recent meme frenzy, combined with hedge fund manager Eric Jackson's vote of confidence, couldn't have been better timed. In late May, the company was hit with a delisting warning from Nasdaq after its shares traded below $1 for 30 consecutive business days. With 180 days to regain compliance, Opendoor moved quickly, proposing a reverse stock split in early June that could boost its share price by as much as 50 times. That being said, with the clock ticking, the sudden burst of investor enthusiasm couldn't have landed at a more critical moment. After years of underperformance, the stock is now up 28% this year, easily outpacing the S&P 500 Index's ($SPX) year-to-date (YTD) gain of 8%. Over the past month alone, OPEN shares have soared an eye-popping 267%, leaving the broader index's 3% return in the dust. Opendoor's Q1 Earnings Beat and Q2 in Spotlight On May 6, Opendoor released its fiscal 2025 first-quarter results, and the numbers came in stronger than Wall Street had anticipated. Revenue totaled $1.15 billion, down 2.4% from the same period last year but still comfortably above the consensus estimate of $1.06 billion. For a business built around iBuying — the practice of purchasing and reselling homes online — revenue can often look impressive even when profits don't follow. That's why investors tend to look deeper, focusing more on profitability and cash flow than just the top line. In that regard, Opendoor showed encouraging signs of progress. The company trimmed its adjusted net loss by 21% to $63 million, while its net loss per share improved 25% to $0.12, beating analyst expectations of a $0.13 per-share loss. More notably, Opendoor managed to cut its adjusted EBITDA loss to $30 million, a sharp improvement from the $50 million loss it reported a year ago. These numbers reflect ongoing efforts to rein in costs and streamline operations. Operational momentum also showed up in its home activity. The company purchased 3,609 homes during the quarter, a 4% increase from the first quarter of 2024 and a 22% jump sequentially. As of quarter-end, Opendoor held $559 million in cash, providing it with some financial breathing room to support short-term operations. Looking ahead, Opendoor is scheduled to report its Q2 earnings after the market closes on Tuesday, Aug. 5. Management has guided for revenue in the range of $1.45 billion to $1.53 billion and expects contribution profit to land between $65 million and $75 million. Analysts, meanwhile, forecast a significant improvement in the bottom line, with a projected Q2 net loss per share of just $0.04 representing a 56% annual improvement. For the full fiscal year, losses are expected to narrow by 55% to $0.24 per share, and further shrink to a $0.23 loss in fiscal 2026, signaling a gradual path toward stability. What Do Analysts Expect for Opendoor Stock? As the countdown to Opendoor's Q2 earnings ticks on, Wall Street is treading carefully. OPEN stock holds a consensus 'Hold' rating, underscoring a wait-and-see approach. Of the 10 analysts covering the name, only one is all-in with a 'Strong Buy,' seven play it safe with a 'Hold,' one suggests a 'Moderate Sell,' and the remaining analyst sounds the alarm with a 'Strong Sell.' Currently, the stock trades at a premium to its average analyst price target of $1.14. On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
2 hours ago
- Automotive
- Yahoo
Will Carvana Continue to Build on Its Cash Flow Strength in 2025?
Carvana's CVNA primary sources of operating cash flows are derived from the sale of retail vehicles, wholesale vehicles, originated loans and complementary products, including vehicle service contracts, GAP waiver coverage and other related offerings. The main uses of cash in operating activities include inventory purchases, personnel-related expenses and customer acquisition costs. For the years ended Dec. 31, 2024 and 2023, Carvana generated $918 million and $803 million in cash from operating activities, respectively. The $115 million year-over-year increase was largely driven by improved operating performance and a $274 million reduction in interest paid, attributed to higher paid-in-kind (PIK) interest on the Senior Secured Notes in 2024. PIK allows companies to conserve cash in the near term and is commonly utilized by rapidly growing 2024, Carvana's operating performance strengthened due to higher unit sales and record annual revenues, leading to significant profitability milestones. The used car retailer reported an all-time high net income, adjusted EBITDA and GAAP operating income. Carvana anticipates sequential growth in both retail units sold and adjusted EBITDA in the second quarter, projecting new all-time company records for both measures. Expected improvement in the company's operating performance will continue to drive its operating cash addition to operating cash flows, Carvana generates cash through financing activities, including short-term revolving inventory and finance receivable facilities, real estate and equipment financing, debt issuances and equity offerings. Historically, these financing activities have supported the company's growth, market expansion and strategic initiatives and this trend is expected to continue. Cash provided by and used in financing activities totaled $261 million in 2024 and $868 million in 2023. CVNA carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Cash Flow Performance of CVNA's Competitors In 2024, Group 1 Automotive, Inc. GPI reported a $396.1 million increase in net cash provided by operating activities compared to the prior year. However, on an adjusted basis, Group 1's operating cash flow declined $36.9 million due to a $103.5 million drop in net income and a $440.1 million reduction in floorplan notes Motors, Inc. LAD reported a $897.5 million year-over-year rise in operating cash flow in 2024, driven by its maturing financing receivables portfolio and lower inventory levels at more established locations. Lithia's current free cash flow deployment strategy allocates 35-45% toward acquisitions, 25% toward capital expenditures, innovation and diversification and 30-40% toward shareholder returns through dividends and share repurchases. Carvana's Price Performance, Valuation and Estimates Carvana has outperformed the Zacks Internet – Commerce industry year to date. CVNA shares have surged 65.4% compared with the industry's growth of 11.4%. YTD Price Performance Image Source: Zacks Investment Research From a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.46, higher than its industry's 2.17. Image Source: Zacks Investment Research EPS Estimates Revision The Zacks Consensus Estimate for 2025 and 2026 EPS has moved up 5 cents and 8 cents, respectively, in the past seven days. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
4 hours ago
- Automotive
- Yahoo
Can These 2 Monster Growth Stocks Hit New Highs? Here's What Oppenheimer Thinks
Every investor aims to build a portfolio that grows steadily and delivers meaningful returns. Growth investing remains a time-tested strategy for achieving just that. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The secret to success starts with spotting companies that have solid fundamentals, innovative products, or a clever twist on a proven formula. These are the kinds of businesses that tend to capture attention – and fuel long-term gains. Recent share price surges may draw attention, but they shouldn't be viewed in isolation. While impressive growth over the past year can be encouraging, it's not a guarantee of what lies ahead. The well-worn adage still applies: past performance doesn't ensure future results. However, when a stock has more than doubled over 12 months and is backed by a strong business case, it's worth serious consideration, especially if it aligns with the traits that typically underpin lasting growth. Against this backdrop, we've used the TipRanks database to zero in on two monster growth stocks that have recently caught the bullish attention of Oppenheimer analysts. Let's take a closer look at what makes these picks worth watching. Carvana Company (CVNA) We'll start with Carvana, a company that has been changing the face of the used car market. Carvana, based in Arizona, was founded and launched in 2012; the company makes available an online marketplace for used cars. Customers can browse the site, searching for the correct car using a variety of parameters – and then can compare prices. Carvana's online shopping platform is available on PCs, but can also be accessed as a mobile app, allowing customers to take their search results with them when they go to look at vehicles. In a unique feature, Carvana maintains a network of 'car vending machines' around the US, where customers can go to visually inspect the cars they find through the online platform – this is a sound insight from the company, recognizing that while anything can be found or bought online, some products need to be seen by the customer before the final purchase. Carvana's vending machines are multi-story automated parking structures, with windowed parking slots, allowing customers to view prospective purchases and even to physically inspect the vehicles. In addition to its vending machines, and serving areas that are both near the machines or far from them, Carvana also offers purchase delivery services. Once a customer has purchased a vehicle, the company will deliver it to the customer's home – and in several areas, that service is available as same-day delivery. We should note that this past May, Carvana expanded its same-day delivery, adding Denver, Colorado to the list. Carvana's services have proven popular, as a platform for both buying and selling used vehicles. Over the past year, the company has seen its stock price increase by an impressive 163%. The company has impressed investors in several ways: with its successful business model; its plans for expansion; and its recent growth in both revenue and earnings. For its last reported quarter, 1Q25, Carvana reported total revenues of $4.23 billion – a record figure that was up 38% year-over-year, and beat the forecast by $230 million. The company's revenue was based on retail sales of 133,898 units, for a 46% year-over-year jump. At the bottom line, Carvana realized a record-level net income of $373 million. We'll see Carvana's Q2 results on July 30, after the markets close. Oppenheimer analyst Brian Nagel is impressed by Carvana, particularly by the company's proven ability to disrupt the used car market and to carve out a unique and profitable niche therein, with potential for expansion. 'CVNA represents a unique, digitally-driven disruptor, within the expansive and inefficient domestic used car marketplace. Following significant fundamental and financial repositioning, the CVNA business model is now 'humming,' generating meaningful cash, scaling, and capitalizing well upon improving, underlying demand trends, within the space. We have undertaken a refreshed deep-dive analysis of Carvana and conclude that while shares have rebounded to all-time highs that investors still under-appreciate near- and longer-term growth and profit potential, for the company. CVNA and the used car space are situated well to capitalize upon ongoing trade disruptions as tariffs likely drive prices for new autos higher,' Nagel explained. These comments support Nagel's recent upgrade from Perform (i.e., Neutral) to Outperform (i.e., Buy), with a $450 price target that suggests a one-year upside potential of 34%. (To watch Nagel's track record, click here) Carvana's Moderate Buy consensus rating is based on 19 recent analyst recommendations, that include 13 to Buy against 6 to Hold. The shares are priced at $336.33 and their $359.06 average price target implies a gain for the coming year of 7%. (See CVNA stock forecast) Spotify Technology (SPOT) From cars, we'll switch to music, and look at Spotify. This Swedish-based company was founded in 2006, and over the past two decades it has built itself into a leader in the online on-demand music streaming segment. Today, Spotify boasts a market cap of $141 billion, reflecting both its early entry into the profitable music subscription niche and the popularity of online music streaming. Spotify offers its service through the subscription model, with paying users able to choose from an extensive library of audio files and sources, including more than 100 million songs, 7 million podcasts, and an expanding audiobook library that currently has 350,000 titles. The company boasts that it has over 670 million users worldwide, a total that includes some 268 million paying subscribers. An audio library that size presents difficulties, however. Listeners can't begin to hope to browse all of the titles, and fans may have difficulty finding their favorite songs or podcasts. Spotify uses AI technology to help meet this challenge, putting the tech to work building playlists or offering suggestions based on users' previous selections. For the more old-school users, the site also offers the more traditional search options of a search bar and categorized audio files. The company will report its 2Q25 results today (July 29) before the opening bell, against a backdrop of ample share gains. The stock is up by 116.5% in the last 12 months. According to Bloomberg consensus estimates, Wall Street is expecting revenue of €4.27 billion, up from €3.81 billion in 2Q24, and adj. EPS of €1.97, compared with €1.33 in the same period last year. Oppenheimer analyst Jason Helfstein sees plenty of reasons to expect continued gains here. 'We believe that SPOT will benefit from the secular tailwind of growing digital audio streaming adoption and that the company's subscription economics are better than most believe,' Helfstein opined. 'We model 1) the largest MAU runway in Internet, 2) free tier monetization (either ads or ad-supported monthly fee), 3) conversion benefits from App Store changes, 4) Superfan tier, 5) continued GM leverage, and 6) FCF generation/share repurchases. Forecasting 16% revenue CAGR 2024-2030 based on a 9% subscriber CAGR and 21% ARPU CAGR driven primarily by ad monetization. SPOT meaningfully undermonetizes ad tier, with visibility to ~3x ad ARPU over time on podcasts and ad tools; if this fails, SPOT could establish a very small monthly fee for its lowest tier.' Quantifying his stance, the analyst recently upgraded SPOT shares from Perform (i.e., Neutral) to Outperform (i.e., Buy), pairing the new rating with an $800 price target – implying the stock could gain 14% over the coming year. (To watch Helfstein's track record, click here) Spotify shares have earned a Moderate Buy consensus rating from the Street's experts, based on 26 recent reviews that feature a breakdown of 19 Buys, 6 Holds, and 1 Sell. The stock has a current trading price of $700.98 and its $776.48 average target price implies that it has an 11% upside on the way by this time next year. (See SPOT stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Automotive
- Yahoo
Is Carvana Set to Lead as Auto E-Commerce Adoption Accelerates?
Carvana Co. CVNA, a leading e-commerce platform for buying and selling used cars, is reshaping the traditional car purchasing and selling process by emphasizing a broad selection, competitive pricing, quality assurance, transparent transactions and a pressure-free experience. Its proprietary technology and vertically integrated model enable a considerably lower variable cost structure compared to traditional dealerships, while delivering substantial customer value through a seamless, high-quality car buying and selling the Federal Reserve Economic Data, e-commerce has steadily increased its share of non-automotive retail for over two decades and reached roughly 18% of such transactions in 2023. Although the automotive retail sector has adopted e-commerce more slowly than other retail categories, continued consumer comfort with making high-value purchases online is expected to drive greater digital penetration in this space as the vast and fragmented nature of the used vehicle market, combined with the broader expansion of online retail, Carvana sees a significant opportunity for sustained growth. The company aims to capitalize on this by further utilizing its established e-commerce and logistics infrastructure, expanding monetization through additional products and services and addressing various points in the car buying and ownership cycle, such as vehicle service contracts and auto insurance. Its technological capabilities and process automation are expected to enable differentiated offerings in these areas. CVNA carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Carvana, which operates exclusively online, competitors such as Group 1 Automotive, Inc. GPI and Lithia Motors, Inc. LAD follow a hybrid model, integrating digital features into their traditional dealership 1 introduced AcceleRide in 2019 to allow customers to purchase new or used vehicles entirely online. The platform allows Group 1's customers to explore various financing options, assess trade-in values and select home delivery. To enhance convenience, AcceleRide also incorporates manufacturer rebates and incentive offers, along with the ability to finalize all trade-in information digitally. Lithia's digital retail platform, Driveway, is designed to give customers full control over their vehicle ownership journey. Through Driveway, users can access a broad, nationwide selection of new, used, and certified pre-owned vehicles, with the option to have their purchase delivered directly to their home or picked up from one of over 290 Lithia locations within the Driveway network. Carvana's Price Performance, Valuation and Estimates Carvana has outperformed the Zacks Internet – Commerce industry year to date. CVNA shares have surged 63.3% compared with the industry's growth of 11.4%. YTD Price Performance Image Source: Zacks Investment Research From a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 3.42, higher than its industry's 2.17. Image Source: Zacks Investment Research EPS Estimates Revision The Zacks Consensus Estimate for 2025 and 2026 EPS has moved up 5 cents and 8 cents, respectively, in the past seven days. Image Source: Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Group 1 Automotive, Inc. (GPI) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
'I'm not here to pump up a stock': The hedge funder who sparked a speculative frenzy says he's not playing the meme stock game
Opendoor isn't a meme stock, says the hedge funder whose thesis sparked a huge rally in the shares. Eric Jackson, known for his call on Carvana in 2023, thinks Opendoor can rally more than 3,000%. He says Opendoor shouldn't be lumped together with other meme stocks that surged this week. The architect of the latest meme stock rally doesn't want you to call him that. Eric Jackson, the founder of EMJ Capital, is bullish on Opendoor—the online real estate platform that embarked on a blistering rally after he posted his thesis on X—but it isn't a meme stock, he says. In his eyes, it's the real deal, a pandemic-era darling with big turnaround potential despite a 92% tumble since its peak. Jackson is known for what ended up being a correctly bullish call on Carvana in 2023. He laid out his views on Opendoor on social media on July 14, sparking not only a rapid rise in the stock, which also seems to have revived the meme stock trade among a newer group of unloved stocks, including Kohl's, Krispy Kreme, and GoPro. But for Jackson, Opendoor isn't a joke. He declined to disclose the value of his firm's stake, but it's now the single biggest position in EMJ Capital's portfolio, he told Business Insider. "I never thought of it that way," he said of investors who called Opendoor a meme stock. "So I sort of take offense, because I find all the meme stocks to be, to me, kind of terrible businesses that I would never want to own. Whereas I see Opendoor as a legitimate turnaround story." Opendoor will probably be the only company among the meme-stock cohort that won't be forgotten about by next week, he said, adding that he sees the latest speculative buying spree fizzling out. Indeed, most of this week's meme stock cohort was already giving up their biggest gains by midday on Friday. Opendoor's stock price spiked as high as $4.97 this week in intraday trading, an almost 830% increase in July. The stock has since pared its gains, trading around $2.46 a share on Friday, but Jackson still thinks shares could hit $82 within the next several years, a gain that would mark a 3,200% increase from current levels. The next leg-up for the stock could come in the next few weeks when the company reports third-quarter earnings, Jackson said. 'I'm not here to pump up a stock' Opendoor first appeared on Jackson's radar in 2022, around the time he started paying attention to Carvana. In a podcast called "The Compound and Friends," he said he believed both companies, which were struggling at the time, could stage a massive turnaround. His bet on Carvana paid off. Shares of the online used car retailer have risen almost 7,000% since the beginning of 2023. The bet on Opendoor — until now — did not. The stock traded between $1-$3 a share around the time Jackson finally gave up on the call and cashed out his shares nine months ago. "It's like having a painful ex in your history and you just don't want to look at their Instagram page or something like that, because it just brings up bad feelings," he said. Jackson thinks the story could be different this time around for a few reasons: Opendoor stock now looks similar to Carvana when Jackson first made his call on the used car seller. Opendoor shares were trading under $1 around the time he fired off a series of posts about the company on X. Opendoor has aggressively slashed its costs in recent years. In 2024, it cut its workforce by 17%. The firm doesn't have much competition in the iBuying space now that Zillow and Redfin have exited that business. Opendoor was likely "thrown for a loop" by the Fed keeping interest rates higher for longer than expected in 2022 and 2023, Jackson said. High borrowing costs significantly impact the real estate sector, but most investors expect the central bank to cut rates several more times this year, potentially stimulating fresh activity in the housing market. Opendoor might also be able to benefit from a big AI play, Jackson told BI, citing conversations with a former company insider. Jackson says what he sees going for Opendoor sets it apart from the meme stocks at the center of this week's euphoric rally. "Does Kohl's have an AI strategy? Does American Eagle, other than hiring Sydney Sweeney, have an AI strategy? I mean, GoPro — I mean, come on," he said of the other meme stocks in the spotlight. On social media, Jackson frequently tells his followers he's on the quest to find the next "100-bagger," a term coined by the investor Chris Mayer to describe an investment that has the potential to return 100 times its value over the long run. Jackson's firm, which has also started leaning on AI models to identify stocks with glimmers of potential, tries to look for three things, he said: Have other people given up on the stock? Does it look substantially mispriced? Does it look like it has a sustainable turnaround trajectory? If the answers are "yes," it could be a winning trade, though he acknowledges the approach isn't an exact science. Successful investments Jackson has made that he deems as 100-baggers include Alibaba, Microsoft, Coinbase, and Roku, he said in a post on X in June. The Opendoor call, in particular, has garnered him a lot of attention. Speaking to Bloomberg, Jackson said his firm had received 600 calls or emails from people inquiring about his fund and investment ideas in the last several weeks. Since posting the Opendoor thread on X, he told BI he's spoken with investors all over Asia, Africa, Europe, and South America who buy into his call, but he has also come across "a lot of negative stuff" on X about his thesis. "I guess it comes with the territory when you stick your neck out there as a real person with real thoughts. You get all these anonymous trolls chirping back at you," he said. "I really hope that if all of retail and all institutional investors truly believe in this $82 story, my hope is they zero in with like, the Death Star on this planet, and just buy and hold," he said, adding that he believed investors could stage a rally similar to Cisco's meteoric rise during the dot-com bubble. Importantly, he emphasized that he's not a fan of people saying he sparked the meme stock rally. "But I'm some grifter or flipper, no. I'm in this for the long run. I'm not here to pump up a stock and jump out of it. I've never done that." Read the original article on Business Insider
