Carvana Slips as Hindenburg Alleges 'Related-Party Accounting Games'
Bull of the Day: Carvana (CVNA)
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Express News | The second-hand car platform Carvana dropped 8% in overnight trading as well-known institution Hindenburg slammed it for multiple financial manipulations.
Carvana Slammed by Hindenburg, and the Stock Pauses Its Meteoric Rise
Hindenburg, who targets "shorting India," sets sights on Wall Street darling: the used car dealer Carvana is a "century accounting fraud."
Hindenburg stated that Carvana is a "century accounting fraud perpetrated by a father-son duo," asserting that the company's "transformation is an illusion." The Institutions found that Carvana sold a $0.8 billion loan to a suspected undisclosed related party, while using accounting manipulation and lenient loan approvals to drive temporary revenue growth, and insiders took the opportunity to cash out billions of dollars in Stocks.
