Carvana's Trillion-Dollar Market Opportunity

After turning a surprise profit, LikeFolio data suggests market share steal may already be underway… [Derby City Daily logo]( [Derby City Daily logo]( March 6, 2024 [Carvana's Trillion-Dollar Market Opportunity]( By Andy Swan Carvana (CVNA) recently surprised the market – and us – when it reported its first-ever annual profit. At LikeFolio, we're great at predicting revenue. Our social media machine detects swings in consumer demand that lead us to [winning trades](. (LikeFolio Investor subscribers just made a whopping 389% gain on one of those alerts. [And we can show you the next big winner here]( But the internal workings of a company are out of our range. We weren’t expecting CVNA to go skyward like it did... CVNA Stock Price Performance, YTD But we can take a retrospective look back to see what we can learn – and how we can best play CVNA from here. Let’s start with the results: ✓ Q4 Revenue: $2.42 billion (-13% YoY) ✓ Q4 Retail Units Sold: -6% YoY ✓ FY23 Net Income: $150 million The third bullet – net income – is the major driver of investor optimism, assisted by Carvana’s ability to generate a larger gross profit per unit than the year prior. RECOMMENDED LINK [Forget NVIDIA, Tesla, & ChatGPT — Buy Elon’s Secret “A.I. 2.0” Project Instead]( Luke Lango, the man who picked Tesla before it skyrocketed 1,000%+, has traveled all the way to the Tesla Gigafactory in Texas to reveal Elon’s hidden A.I. project. It’s known as “A.I. 2.0”, and in Elon’s own words, it will be “a fundamental transformation for civilization as we know it.” And even though “A.I. 2.0” is not yet known, or available to the general public, Luke Lango has found a “backdoor” method to claim a stake before it goes mainstream. And with the way things are progressing, this wealth window could create a slew of millionaires among those who act before the announcement. It’s not X.AI, ChatGPT, Grok or any other A.I. stock for that matter. [❯❯ Click here now to discover how to claim a stake in Elon’s “A.I. 2.0” project](. You can see the stark turnaround in the images below: investors.carvana.com Carvana achieved this massive feat by effectively leveraging technology and streamlining its own internal processes. This allowed the company to: ✓ Trim down the time its own employees spent per sale by 40% ✓ Lower the average days-to-sale by ~70 days (from its peak in 2023) ✓ Reduce the non-vehicle cost of a sale by $900 per unit Whew. The takeaway: Carvana and its team are getting better at moving and selling vehicles – so even though the total number of units sold did fall, operational improvements more than offset the weakness. This ticks off Step 2 of Carvana’s three-step plan (driving fundamental gains in GPU and operational efficiency). Step 3: Return to Growth LikeFolio consumer data shows Carvana still has plenty of room for improvement. Stacked up against other used vehicle peers, TrueCar (TRUE) and CarMax (KMX), it sits at the bottom of the pack in Consumer Happiness at just 60% positive: Web visits do show some near-term traction, up 15% year over year, but still nowhere near where it was a few years ago. (On a two-year stack, visits are down 24%.) RECOMMENDED LINK [We’re in the Final Inning of America’s First-Ever Cash Bubble... Are You Ready?]( A former hedge fund manager who is known for helping the ultra-elite protect their portfolios from massive wealth shifts has uncovered a bubble you NEED to know about. Rookies will scroll past thinking that they’re safe from this bubble. But tens of billions have been pouring into money market funds every week in 2023, which should be setting off alarm bells right now. We’re in the final stretch before this bubble pops. [Click here to get the 3-step process for protecting yourself (and potentially profiting)]( 💡 Assuming Carvana can maintain the operational efficiency it's achieved, web visits will prove extremely valuable to watch to better understand how many cars are changing hands. investors.carvana.com After a sequential dip in volume, has the company maxed out its profit squeeze? We’ll see. Carvana claims just 1% of a $1 trillion market, and demand does suggest some improvement in volume – an indicator of additional market share steal. Even after gaining 750% over the last year, shares have plenty of room to catch up to their 2021 highs. The zoomed-out look puts things into perspective: CVNA Stock Price Performance, 2021 to Date Bottom line: With a trillion-dollar market opportunity in front of it, Carvana has plenty of room to grow. We expect continued momentum in this name. Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio The Derby City Daily Watchlist From AI to crypto to streaming, check out the opportunities you may have missed from Derby City Daily... ✓ [NVDA Who? This AI Chip Maker Could Surge in 2024]( ✓ [You Don’t Need to Buy Bitcoin to Ride This Rally]( ✓ [Walmart Enters the Streaming Wars: Is Roku in Trouble?]( Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. [The Infinite Income Manifesto]( [25 Doomed Blue Chip Stocks]( [5 Unapologetically Profitable Stocks for 2024]( © 2024 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. Charles Street, Baltimore, MD 21201 To unsubscribe or change your email preferences, please [click here](. [Terms of Use]( | [Privacy Policy](