Author argues Carvana's PE multiple is inflated relative to mega-cap tech and may be far higher if Gotham City short report allegations about subprime loans and backdoor dealings are accurate, and discloses an open short options position.
CVNA — SHORT The author argues Carvana trades at roughly 93x PE versus NVDA at 44x, AAPL at 34x and MU at 35x, despite being a low-margin auto retailer with 3-6% net margins. The causal mechanism is that Carvana's earnings may be inflated by risky subprime loans and backdoor dealings per a Gotham City short report, which could push the true PE closer to 900x. The author discloses open short options positions against Carvana and expects to stay heavily short near term. Main stated risk is that the short report allegations may not be validated.
Carvana (CVNA), a low margin Automotive Retail stock with a net margin hovering between 3-6% is trading at a higher Price to Earnings (PE) ratio than the top Tech stocks in the world - tech stocks with double digit profit margins.
This Reddit post, published February 05, 2026, features u/BFLO-Retail discussing CVNA. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/BFLO-Retail · Tickers: CVNA