CVNA reports Wednesday after a 36% monthly rally that has pushed the stock to $409 — and left options traders bracing for volatility rather than celebrating momentum. The put/call ratio jumped to 1.17, nearly two standard deviations above its 20-day mean and the highest reading since mid-March. Short interest rose 16% over the past month to 15.4 million shares, though it ticked down slightly over the past week. Borrow remains cheap at 0.50% and utilisation sits at 16%, well off the 52-week high of 20% touched in late March. The setup is more charged than the borrow costs suggest.
Analyst activity cooled sharply after the stock's run. BofA downgraded to Neutral in early April while lifting its target from $400 to $410 — a signal the firm sees the rally as fairly priced. JPMorgan and Barclays both trimmed targets in the same window while keeping Overweight ratings, suggesting the Street still sees upside but is becoming more selective on valuation. The bull case centres on accelerating market-share gains, faster delivery times and 58% year-over-year revenue growth to $5.6 billion last quarter. Bears point to falling gross profit per unit, rising SG&A expense and lower-than-expected EBITDA — plus longer-term headwinds from softening used-car demand and potential robotaxi disruption. The P/E multiple has stretched to 49x from 37x a month ago, and the price-to-book climbed above 13x.
Institutional holders added aggressively in Q1. Vanguard increased its stake by 3.3 million shares, State Street added 2.8 million and Capital Research lifted its position by 2.2 million. Insiders sold roughly $9.3 million net over the past 90 days, mostly small programmatic disposals by the founder-CEO and COO. The stock has a history of sharp post-earnings moves — the last print in mid-February triggered a 5% one-day drop and a similar five-day decline. The report will test whether the company can sustain revenue growth while stabilising per-unit profitability at a margin that justifies the recent re-rating.
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