- Carvana (NYSE:CVNA) extends on a premarket gain and is now up 22.33% after a business update and upgrade from Goldman Sachs.
- The GS confidence is based off the seismic shift to digital shopping (seen benefiting Vroom as well).
- “We see a long runway for growth in this category, and believe valuations have over-corrected for VRM and CVNA as our gross pro?t estimates have moved higher. We continue to see dynamics surrounding COVID-19 accelerating the shift online in used autos, but beyond that we expect Carvana and Vroom to drive the shift online by leveraging national scale to aggregate demand in a highly fragmented market and take share from the long-tail of small dealers and peer-to-peer market," notes the firm.
- Shares of Carvana are above the $20 level for the first time in three weeks.