Hyperdrive
Carvana’s Frenzied Rally Shows Speculative Bets Are Trending Again
- Stock set to double in January for best-ever monthly gain
- Rally follows a 98% wipeout in market capitalization in 2022
Vehicles sit inside the Carvana Co. car vending machine in Frisco, Texas.
Photographer: Laura Buckman/BloombergThis article is for subscribers only.
Struggling online used-car dealer Carvana Co.’s shares are set to record their best monthly gain ever, amid a speculative trading frenzy that has driven a wild rally in many beaten-down stocks in recent weeks.
The stock is on pace to double in January, jumping sharply in volatile trading sessions. The moves are at complete odds with the broader gloomier outlook for the used-car industry, where prices for vehicles have been tumbling in recent months amid rising financing costs and consumer anxiety about an economic slowdown.