SPRT stock is up more than 860% year-to-date and is getting ready to blow. It saw more than a 180% jump last week and retail investors are anticipating this is only the beginning.
The stock closed at $26.33 on Friday (8.27) after reaching an all time high of $59 per share. The stock remained in green territory despite the selloff from quick traders.
Welcome to Franknez.com – SPRT stock has a short interest of 63.14% and we need to talk about this.
Lets get started!
SPRT Stock Short Interest
That’s right, according to Ortex SPRT has a short interest of 63.14%. This means almost 3/4ths of the stock’s float is being shorted.
Community, SPRT stock is massively shorted. If you took profits this past Friday congrats on your gains. I know a lot of you moved these to either your AMC or GME stock positions.
However, this runup seems to have been just that, a runup. Retail investors are anticipating a short squeeze from SPRT stock in the next few trading days of September.
SPRT has an average volume of 13 million but topped at 166 million on Friday (8.27). This massive volume pumped SPRT stock price up to the $50 range and beyond before getting shorted down to the mid $20 range.
SPRT Short Volume Ratio
SPRT stock had a short volume ratio of 49.45 on Friday, via Fintel. This means almost half of the volume on Friday was being shorted. Even then, the stock was able to make massive moves and still finish green both intraday and after hours.
https://www.youtube.com/watch?v=2t3Vab4-uiQ
SPRT Stock DD
The gamma squeeze we experienced on Friday seems to only be the beginning. The short interest is ridiculously high and with the overall float being much smaller than that of AMC or GME, there are more shorts in this play that will get wrecked short-term.
Why Haven’t We Heard of SPRT Stock?
In all honestly I have to blame myself. I should be on top of these plays and providing the information out to you so that you may digest the information and make a financial decision for yourself.
Two of the biggest plays in the ape community are AMC and GME. This is not going to change. However, I will be sharing information from other plays where the community can multiply their money.
There’s a lot of information and plays out there that simply haven’t had the reach they need to make an appearance to us at scale. For this reason, is why I will make this platform a designated place where you can find this information out from.
Should You Buy SPRT Stock?
SPRT stock ended the trading day on Friday (8.27) with the MACd crossing downwards. This leads me to believe that SPRT stock will continue to drop in share price before finding a new level of support.
There is massive volume coming into this play right now that can easily deflect short sellers and counter with a bounce.
The stock today is on massive discount. The biggest signs pointing towards a short squeeze is how high the short interest is.
After the rally up to $50+ dollars, the short interest has gone down about 10% meaning short sellers might have covered a few of their positions. However, the stock still has a massive short interest!
Well now there’s exposure. More retail investors now know that there is a stock out there that was being shorted on the hush hush with over 75% SI at the time.
Retail investors who made money on SPRT’s runup have moved gains over to AMC or GME stock. Since SPRT has not squeezed yet, this momentum play could be a great way to multiply cash at hand for your main short squeeze plays.
Is SPRT Stock A Distraction?
SPRT stock is not a distraction. GME apes at one point believed AMC to be a distraction but the community noticed the incredible opportunity with this stock as well.
SPRT simply has not been exposed to the community. If there’s something I’d like you to take from Franknez.com is the amount of opportunities that will present themselves to you when you visit the blog.
You have a choice to keep HODLing your main plays, or to put some money in this incredibly shorted stock. No matter what you choose to do, you will always have opportunities to multiply your money.
Announcement
I will only use my blog for good. All the information I publish here will be with sentiment in wanting to help you make life-changing plays and moves. If I don’t believe in it, or don’t think it will benefit you then I will not publish it on my site.
With that being said, I’m doing a giveaway to the first 100 FrankNez Patreon members. We are currently at 80/100. Once we hit 100 members, every single one of you will be receiving a free gift, sponsored by my company.
Thank you for reading FrankNez and for supporting the blog every way you do.
Carvana is currently the fastest growing used car dealer in the United States. And for good reason too, but more on that later. Carvana Stock, ticker symbol CVNA is up almost 50% this year-to-date.
The stock has had an incredible runup since its inception back in 2017 when it was only worth $11. The stock is up more than 3000% in only 4 years. That averages to an astonishing 750% yearly return! Will Carvana stock keep going up? Or is it overvalued now?
Welcome to Franknez.com – today I want to go over stats, charts, and predictions on Carvana stock. Why? The company might just have some more room for growth.
Lets get started!
I came across Carvana stock when I was actually looking up the previous BMW M4 model online. I was curious to see how they were doing in the market and that’s when I stumbled across Carvana.com.
It wasn’t until after my experience on the website that I decided to look at the Carvana stock price. I looked at the 1 month, 6 month, and YTD chart and wasn’t surprised.
There’s a lot I want to go over so grab a drink or a snack and hang out with me for a minute.
Why Is Carvana Stock Going Up?
Carvana has had a great earnings report both Q1 and Q2 of this year, 2021. The company beat Q4 of 2020 by 31.72% in earnings per share, and Q2 beat Q1 this year of 2021 by a whopping 165.21% in earnings per share.
Carvana stock earnings call chart
The company is doing a great job at earning revenue and keeping a positive cash flow. Carvana earned $3.34 billion dollars in revenue this Q2 which is a 198.39% increase from Q1 when it earned $2.24 billion in revenue.
Carvana’s current net income this second quarter was a whopping $22 million compared to being negative last quarter. Carvana is seeing some positive cash flow now and for this reason is why Carvana stock is rising.
Carvana Stock Financials
Because Carvana is both a traditional business and eCommerce platform, we can expect more of the tech side to be automated in the near future.
Starting up the tech side costs money, which is why we are seeing the company finally begin to reach higher earnings. The eCommerce side of the business is now performing as it should, attracting more and more buyers to the user experience.
See, at Carvana you don’t have to leave your home to purchase a vehicle. Carvana has done an amazing job at configurating every vehicle at their dealer for an online shopping experience.
What makes Carvana so unique is that no other dealer is doing this. Carvana buys vehicles and stores them at their locations. They then create an online model of the exact vehicle with 360′ degree enhancement that you can toggle right from your phone or laptop.
The images are high quality and you get to look at the exact vehicle you’re looking to buy. They even display bullet points wherever the car has minor damage (if it has any) and provides you with an image of the discrepancy (as shown below).
What’s amazing though is the user experience. You also have the availability to view the interior of the vehicle and access the key feature information from within.
When you decide you’re going to buy a car with Carvana, they deliver your vehicle directly to your home. It’s this convenience in the marketplace that sells and why it makes Carvana an attractive choice to buy a vehicle from.
Carvana stock certainly has room for growth. The company is still relatively new and as innovation and practicality grows, so will the company earnings and share price with it.
If we look at Carvana’s stock chart trend then we can see that it’s had a steady growth for the past 4 years in a row.
Carvana Stock Price History
Even as companies shut down during the start of the pandemic in 2020, the company kept growing. It’s these type of companies that have innovation and an online platform that will be the future of America.
Just like Fiverr stock, the online sector is where scalability is massive. I believe Fiverr could be the Amazon for freelancers. This online marketplace is dominating its space by offering freelancers all around the world a place to sell their services from home.
Carvana’s eCommerce platform can allow people around the globe to purchase vehicles directly from them rather than going into a local dealership or specific dealership.
The potential is certainly massive in my opinion.
How High Will The Stock Go?
Carvana stock could be a great long term stock to hold. The company is still new with lots of room for growth. They are definitely changing the way we buy cars today. Like any eCommerce or tech company, Carvana stock has the potential to reach the high hundred mark to even 4-figures per share.
The company will have to continue to innovate and dominate in order to accomplish this. My Carvana stock prediction is that the price action will skyrocket throughout this decade.
There’s an online business boom that’s going to take place very soon as more and more companies begin to evolve. Whether it’s a hybrid online business model like Carvana, or a full online business like Fiverr, there is no limit to scalability online.
Carvana’s competitors include both CarGurus and CarMax. Both of these companies sell vehicles but don’t utilize an innovative eCommerce platform such as Carvana does for it’s users.
Unlike Carvana or CarMax, CarGuru doesn’t have its own dealerships. CarGuru sells cars from other dealerships and gets a cut from prospects who contact the dealers straight from CarGuru’s website.
CarMax is a more direct competitor to Carvana, though it doesn’t use the tech Carvana does. Instead, it has a more traditional car dealer business model.
Carvana is in the lead and I believe the company will continue to further innovate down the road.
“The more awareness that’s being built, I think the more understanding and eventually adoption and acceptance of buying a car online,” he says. “Certainly when you look back 10 years ago, to where it’s gotten now, it’s been crazy the growth that’s happening there.” Words from Ryan Keeton, via InsideHook.
More People Want Online Services
According to a survey conducted by Root & Associates, 53% of U.S consumers would be either extremely or very likely to purchase a vehicle entirely online. 59% said they prefer to conduct business on a website provided that they’re able to test drive the vehicle before purchasing it.
86 percent of those surveyed by Root & Associates said that they’d choose to do business with dealerships that offered online sales rather than those that didn’t, via. The Washington Post.
Buying a car online vs buying in person
Roots & Associates says that only 35% of dealers are interested in selling vehicles via their website. That’s incredible. It’s for this sole reason that Carvana has more market share online and are leaders in this sector.
Most car dealers aren’t even willing to take this route. They fail to understand that online business models are the future. It’s incredible to think just how far Carvana can scale their services.
Could they possibly one day sell more Toyotas nationwide than Toyota dealerships? We’re just going to have to find out now aren’t we.
Does Carvana Pay Dividends?
Carvana does not currently pay dividends to its shareholders. This is rather common for a brand new company with only a few years being public.
Offering dividends is something companies can incentivize to their investors as the company continues to grow and yield promising returns.
Right now, Carvana is in the growth process. Dividends could be an incentive for perhaps another year down the road as the car company continues to scale.
So, Is Carvana Stock A Buy?
Carvana stock is certainly a buy if you have a strong conviction towards the online business sectors and marketplaces. Online business models are scaling businesses quickly and shooting up their stock price as well.
The stock market has currently been volatile so I would personally wait for the markets to dip. If you’re able to catch Carvana stock while the market is on fire, I would buy the stock on discount.
Stock market crashes are indeed the best times to bulk up on your favorite stocks at a discount.
How To Buy Carvana Stock
If you’re not invested in the stock market yet, first you’ll need to open a brokerage account using Vanguard or Fidelity for example, which are free to use by the way. Once you create your account you’ll be able to fund it and buy stock.
Investing in stocks has allowed me to grow my net worth and multiply my hard earned saved money many times over. It’s incredible how applied knowledge can change your life forever.
If you’re planning to buy Carvana stock or are simply looking for stocks to diversify your portfolio, be sure to bookmark this page so you don’t forget this information.
I don’t like to write articles on stock unless I believe they have massive potential growth. Whether it’s a momentum stock or a long term play, you’ll hear about it here.
And lastly…
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