Most of Carvana’s (CVNA) Income is Fluff, Potentially Hiding Huge Concealed Losses Last Quarter

Carvana’s (CVNA) profit margins may be under duress and wildly overinflated by the reported earnings numbers. 1) CVNA reported adjusted EBITDA of $511 M, BUT without a truly massive income tax benefit this would have been a LOSS of over a hundred million dollars. 2) They reported an “other expense” charge of $2,158 M with no clarification. One interpretation is that this charge is somehow associated with the “income tax benefit,” but details were obscured and noticeably light. 3) There is a very real possibility that as Carvana pushes for their 3 million car a year goal the net margins will continue to erode, debt will explode, and accounting irregularities will become pages and pages of red ink. **https://ibb.co/1tNRmnP0** **Credentials and Position Disclosure**: I am a retail stock and options trader and Carvana bear. I remain highly negative against Carvana, and have profited from CVNA’s fall through aggressive put options. I am not a financial professional. This is not financial advice.