Why Carvana Stock Lost 29% in April

Shares of Carvana (NYSE: CVNA) pulled back again in April after the volatile online used car dealer continued to negotiate with its bondholders, and the economy showed signs of risk from the banking crisis and rising interest rates. As the chart below shows, much of those losses came in the last week of the month, even though there was no company-specific news out on Carvana then. Carvana shares collapsed last year as investors worried the company could go bankrupt as interest rates spiked and car prices fell, creating a toxic stew for the used car dealer, which was already deep in debt and unprofitable.