Auto Dealer Monthly, June 2017

June 2017 adt magazine com 11 we are counselorlibrary com 877 464 8326 PHOTO GETTYIMAGES COM ROBERT CICCHETTI millennials who arent showing up for their party in massive numbers They had their big debut on Wall Street and their IPO really sucked Almost immediately after being released Carvana stock dropped 10 Since then it has bounced up and down but no fireworks It didnt shoot off the top of the graph as these arrogant disruptors envisioned Now that does suck The analysts have not been kind to Carvana Just read what the Wall Street insiders are saying about these alleged clowns According to Forbes Carvana lost 931 million in 2016 on 3651 million in revenue One of my favorite articles had the headline Carvana Cash Burn and Lack of Operating Leverage Rightfully Scare Investors There are one liners all over the internet about Carvana bleeding money out of every artery as they attempt to disrupt the car business They deserve every rotten insult the analysts are slinging According to The Wall Street Journal Carvana reported 153 million in cumulative losses since it was founded in 2012 They keep repeating the same tired worn out refrain Were giving the customers what they want Well excuse me Im just a high school graduate from the Westside of Jacksonville but I can tell you thats a load Theyve racked up 153 million in losses and they went to Wall Street to get more You know why this is failing The answer is math Carvana will be a faded memory as they drift further into obscurity as another footnote in business history Of course Carvanas executives blamed their piss poor launch on the car business The companys IPO comes amid mounting evidence that the six year recovery in the U S auto industry may be losing steam Theres something to be said about a company that triples their revenues while tripling their losses Groucho Marx once said If we dont sell too many of these we might break even Until next time find me on Facebook and keep those emails and phone calls coming You can sing along with me Joshua fought the battle of Jericho and the walls came tumblin down The author says Wall Street investors have been kind to Carvana but analysts have been flat out mean since the online retailers underwhelming IPO