Wall Street

Carvana Shares are Flying After Being Short

Shares of online used car dealer Carvana rise 25% after trading halted several times

The shares of the online used car trading company, Carvana, rose amid a fierce trading round in which the short-traded shares jumped several times, and in the end, the company’s share closed up by 24.7% despite the suspension of trading at least four times, noting that the Carvana share price hit the lowest level His two years earlier in the trading round.

Stocks that get a lot of interest from short sellers tend to fly when the market is high, as some investors who have bet against these companies’ stocks will try to cover their position by buying back the stock they borrowed, which can lead to so-called “pressure”. out in the open.”

Nearly 29% of Carvana’s shares available in the market were short sold, which is one of the highest percentages witnessed in the US market, and earlier in Thursday’s trading round, major stocks tried to return to their mediocre levels after suffering from a severe sell-off in tech stocks. Read more [Technical Stock Sale Campaign Drives Nasdaq to Collapse].

The rise in Carvana’s shares coincided with the volatility of big names famous for their short trading, such as GameStop, AMC and the shares of electric vehicle companies.

More than 41 million shares of Carvana’s shares have been traded today, compared to an average trading volume of not more than 9 million shares during the past 30 days, noting that the company, whose shares have fallen by 83% since the beginning of the year so far, has recently faced pessimistic sentiment among analysts Wall Street, whose stock was downgraded by several analysts at Stifel, Morgan Stanley and Wells Fargo this May, and it is worth noting that Carvana posted disappointing quarterly results in April with a huge loss per share.

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