Home Business The online seller of used cars Carvana increases sharply by 20%, stops...

The online seller of used cars Carvana increases sharply by 20%, stops several times

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“Automata” used car Carvana May 11, 2022 in Miami, Florida.

Joe Riddle | Getty Images

Promotions online store used cars Caravan rose on Thursday amid a tumultuous trading session during which several stocks jumped, which fell sharply.

Shares rose about 23% around 11:50 a.m. ET. On Thursday, trading stopped at least four times. Carvana’s share price reached a new two-year low earlier in the session.

Shares with a high short interest rate are likely to appear in market rallies, as some investors who have bet against these companies are likely to cover their short positions by buying back borrowed shares. This can lead to what is known as short compression.

According to FactSet, nearly 29% of Carvana’s available-for-sale shares sold in the short term are one of the highest in U.S. markets.

On Thursday, the average of major stocks cut losses, trying to recover from a vicious sale led by technology stocks.

The Carvana surge occurs when other names with big short bets against them appeared during the session. GameStop, AMC and stocks of electric vehicles traded sharply above.

Carvana, which has fallen more than 80% this year, has recently faced very negative sentiment on Wall Street. In May, Carvana received a cut from companies such as Stifel, Morgan Stanley and Wells Fargo.

“Deteriorating capital market conditions and deteriorating trends in the used car industry have shattered our belief that Carvana can get the capital it needs to realize sufficient scale and self-financing status,” Scott DeWitt of Stifel said in a research note on Tuesday.

In April, Carvana reported disappointing quarterly results with wider-than-expected losses per share.

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