Carvana (NYSE:CVNA) stock is falling on Monday after Morgan Stanley analyst Adam Jonas hit the car seller with a harsh price prediction.
The Morgan Stanley analyst pulled his coverage of CVNA stock in a note Friday while also stating it could only be worth “as little as $1” per share. For the record, Jonas had previously held a price target of $430 back in March.
To put that in perspective, CVNA stock closed out trading on Friday at $8.76 per share. Investors will also note that the analyst consensus price target for shares sits at $47.
All of this comes as Carvana struggles after missing estimates in its latest earnings report. This is the result of the used-card market struggling with prices of vehicles dropping after a surge in value during the pandemic. Jonas claims this makes the market incredibly volatile, which is why he pulled coverage of the shares.
CNVA Stock Holders Aren’t Happy About the News
We’re seeing loads of activity from CVNA stock today as investors sell shares. This has resulted in heavy trading, with some 34 million shares of the stock having changed hands as of this writing. For the record, the daily average trading volume for CVNA is closer to 11 million shares.
CVNA stock is down 17.9% as of Monday afternoon.
Investors looking for more of the latest stock market news are in the right place!
InvestorPlace has all of the most recent stock news traders need to know about for Monday! A few examples include short squeeze stocks to watch, Meta Platforms (NASDAQ:META) layoffs, Rivian (NASDAQ:RIVN) earnings and more. You can read up on all of that news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.