Carvana Shares Surge 40% as Company Posts First Ever Annual Profit After Cost Cuts and Debt Deal
• Carvana shares surged 40% after posting first ever annual profit of $150 million • Cost cuts and debt reduction deal with bondholders fueled turnaround • Stock remains far below 2021 peak but saw gains on profit news and short squeeze potential • Company became popular during pandemic but struggled with high debt and inventory • Analysts now more positive given optimized operations and limit to downside risks