Prediction: Carvana's New-Car Business Will Work. Early Numbers Are Stunning.
Carvana is finally selling new vehicles, and early results emphasize how lucrative that could become.
Overview
It's a shame that Carvana (NYSE: CVNA) doesn't have its headquarters in Las Vegas, because it's been quite a magic show. Years ago, there were legitimate questions about whether the company was heading into bankruptcy. Then, through a series of moves, management turned everything around and began to thrive as consumers adopted the online-sales strategy. If you had invested $10,000 in Carvana three years ago, it would be worth over $140,000 now.
For its next magic trick, the company is going to scoop up a bunch of brick-and-mortar dealerships, expand into new-car sales, and refuse to sell you a vehicle in person. Sounds crazy, right? My prediction to the rest of the industry: It's going to work scarily well.
Details
Ask any used-car retailer, and they'll probably tell you Carvana has built a better mousetrap and disrupted its industry. Evidence backs that up: The company's $70 billion market capitalization makes it the most valuable auto retailer in the U.S.
Source
Originally published at www.fool.com.