Carvana missed Wall Street consensus estimates for both its top and bottom lines. Investors appeared to focus on its progress in cutting costs and narrowing its losses. Carvana's shares were up by 32.3% as of 11:15 a.m. ET on Friday.

The company's adjusted loss of $2.35 per share in the quarter was also worse than Wall Street's expectation of $1.79. But investors ignored the company's top- and bottom-line misses and instead focused on cost-cutting progress. The company cut about 12% of its workforce in May.

The company is also making more money from each car that it sells, compared to the prior quarter. Add to this high inflation, rising interest rates, and an expensive automotive market (not to mention a potential economic slowdown), and it's not hard to imagine that Carvana's share price run-up today probably isn't sustainable.
Posted by RU rumbleshark
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