Core Viewpoint - Carvana's stock has shown recovery after a critical report from a short-seller, with analysts defending the company and some upgrading their recommendations, leading to a 9% increase in share price [1]. Group 1: Short-Seller Report - Hindenburg Research issued a critical report on Carvana, titled "Carvana: A Father-Son Accounting Grift For the Ages," targeting CEO Ernie Garcia III and his father Ernest Garcia II [2]. - The report accused Carvana's management of significant issues, claiming that over 25% of the company's gross profit came from selling client auto loans to third parties [3]. Group 2: Analyst Responses - Analysts from Needham and JPMorgan Chase defended Carvana, maintaining their buy recommendations despite the negative report [4]. - RBC Capital and Citigroup also upgraded their recommendations to buy, with Citigroup noting Carvana's effective inventory expansion to meet market demands [5].
Why Carvana Stock Motored 9% Higher This Week