Carvana

Ernest Garcia III, CEO of Carvana, speaks to CNBC on the floor of the New York Stock Exchange, March 7, 2019.Brendan McDermid | ReutersShares of Carvana plummeted by nearly 40% in morning trading after the embattled online used car retailer's largest creditors reportedly signed a deal binding them to act together in negotiations with the company.The pact, reported by Bloomberg, includes creditors such as Apollo Global Management Inc. and Pacific Investment Management Co. that hold around $4 billion of Carvana's unsecured…

Carvana Co. CVNA -3.13% , the used-car dealer that was a pandemic winner, is rushing to conserve cash as once-plentiful financing options dry up and business deteriorates.On Friday, Carvana laid off about 1,500 people, its second round in six months. Its weakening finances mean raising funds would be difficult and costly, and it could run out of cash in a year, analysts say. Few companies have been hit harder by rising interest rates than Carvana. The company’s interest…

Carvana Co. CVNA -3.13% plans to lay off about 1,500 employees, or about 8% of the company’s workforce, executives said in a Friday memo to staff. The workforce reductions come as the online used-car retailer faces economic headwinds and an uncertain future, Chief Executive Ernie Garcia said in the memo. The move also adds to the 2,500 employees the company, based in Tempe, Ariz., planned to lay off…

Pedestrians pass in front of a GAP store in New York.Scott Mlyn | CNBCCheck out the companies making headlines in midday trading.Ross Stores — Ross Stores jumped 10% after a quarterly beat on earnings and revenue. The company was also named by Credit Suisse as its top pick in the off-price retail sector. Analyst Michael Binetti boosted his price target to $123 from $99. On Thursday, Ross Stores reported third-quarter earnings-per-share of $1.00, versus a Refinitiv estimate of 81 cents.related investing newsThe retail…

A Carvana used car "vending machine" on May 11, 2022 in Miami, Florida.Joe Raedle | Getty ImagesCarvana plans to lay off about 1,500 people, or 8% of its workforce, following a freefall in the company's stock and concerns around its long-term trajectory, according to an internal message obtained by CNBC's Scott Wapner.The letter from Carvana CEO Ernie Garcia cites economic headwinds including higher financing costs and delayed car purchasing. He says the company "failed to accurately predict how this would all play out…

Ernie Garcia, CEO, CarvanaScott Mlyn | CNBCDETROIT – Last year, Carvana CEO and cofounder Ernie Garcia went on a victory lap.He touted the company's "landmark" second-quarter results on Aug. 5, 2021 that included the used car retailer's first-ever quarterly net profit. He then reminisced about the rapid growth of "a bunch of ambitious kids with a shocking amount to learn" into a Fortune 500 company.It's now apparent the company's executives still have more to learn. Carvana's fairytale rise has since turned into a…

People try their luck at winning a car from the Carvana vending machine at SXSW festival in Austin, Texas on March 12, 2016.Michelle Castillo | CNBCShares of Carvana jumped by as much as 32% Thursday morning – representing a small, yet notable, increase after a week of significant declines for the used car retailer.The stock hit $10 a share during early trading but has given back some of those gains and was trading around $9.49 per share during trading mid-morning, up by 25%. The move came as the broader market surged on…

Carvana Co. ’s bonds are touching all-time lows, spotlighting investors’ concerns about the used-car seller’s long-term trajectory as it burns cash and faces rising borrowing costs. Carvana’s long-term bonds have declined to distressed levels, with some now trading as low as 33 cents on the dollar on Wednesday, a sign that investors don’t believe they will be paid back in full. The yield on their 10.25% notes was over 30% as of Tuesday, according to MarketAxess , a sign that Carvana would struggle to…

Budrul Chukrut | SOPA Images | Lightrocket | Getty ImagesCheck out the companies making the biggest moves midday:Carvana — Carvana shares shed more than 15%, with trading briefly halted at one point due to volatility. The sell-off comes after the used-car seller's worst day ever on Friday, when the company had an earnings miss and Morgan Stanley pulled its rating and price target for the stock.Meta Platforms — Shares of Facebook owner Meta jumped 4.7% following a Wall Street Journal report over the weekend saying the…

A Carvana used car "vending machine" on May 11, 2022 in Miami, Florida.Joe Raedle | Getty ImagesShares of Carvana were briefly halted Monday due to volatility, down more than 20% to below $7 per share — its lowest point on record.Carvana stock posted its worst day ever Friday after the company missed Wall Street's top- and bottom-line expectations for the third quarter as the outlook for used cars falls from record demand, pricing and profits during the coronavirus pandemic.Volume spiked on the beaten-down used car seller…