Carvana Shares Jump 25%: What's Going On?


Carvana Co CVNA shares traded significantly higher on above-average volume Thursday.

Carvana's average session volume over a 100-day period was 6.81 million, according to data from Benzinga Pro. Thursday's trading volume totaled 41.6 million. Also of note, more than 46% of the total float is being sold short, per Benzinga Pro data.

According to Wall Street Journal report from earlier in the week, Carvana plans to lay off 12% of its workforce.

Carvana CEO Ernie Garcia reportedly told employees in a company email that Carvana had "overshot" its growth strategy. As a result the company plans to cut about 2,500 workers focused on operations.

On Tuesday, Carvana announced the $2.2-billion acquisition of ADESA’s U.S. physical auction business from KAR Auction Services Inc KAR, consisting of 56 ADESA locations. 

Carvana operates an e-commerce platform for buying and selling used cars.

From Last Week: 10 Of The Worst Cars Ever Made

CVNA Price Action: Carvana shares have traded between $28.35 and $376.83 over a 52-week period. The stock closed Thursday up 24.67% at $37.40.

Photo: Tony Webster from Flickr.

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