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00:03Carvana's shares rose on Wednesday as traders priced in a near 90% chance of a Federal Reserve
00:08rate cut next week, according to Benzinga. The bullish sentiment was extended after Wedbush
00:14analyst Scott Devitt upgraded the stock to outperform with a $400 target. Carvana's demand
00:20relies on borrowers sensitive to auto loan APRS. A Fed rate cut would lower payments,
00:26expand its shopper base, and support expectations for more than 20% annual unit growth.
00:32Carvana finances its inventory with variable rate floor plan loans and securitizes the auto loans
00:37it originates. Lower short-term rates and declining treasury yields reduce holding costs,
00:43narrow funding spreads, and boost premiums on its auto loan bonds. Shares rose 3.64% to $395.93 on
00:52Wednesday, moving closer to their 52-week high of $413.33.
00:58For all things money, visit Benzinga.com.
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