(Bloomberg) — The father-son duo behind Carvana Co. have seen their fortunes rebound as shares of the Phoenix-based online used-car dealer have surged more than 3,000% from historic lows.
*Since December 2022, when Carvana shares dropped below $4 per share due to declining sales and the need for the company to restructure debt due to rising interest rates, Ernie Garcia II and Ernie Garcia III have increased their total net worth by more than $11 billion. On Thursday, the company's shares surged 34% to reach their highest level in almost two years on the release of improved first-quarter earnings, with revenue exceeding analysts' projections.
*According to the Bloomberg Billionaires Index, the elder Garcia's wealth increased to $10.9 billion in a single day from a 2022 low of $3.1 billion, while his son's net worth increased to $3.8 billion. In an interview with Bloomberg TV on Thursday, Ernie Garcia III stated, "2022 and 2023 were a tough run for us." "The team pulled together during that time, and we played exceptionally well. I firmly believe that this quarter is the best one in our team's history." Chief executive officer Ernie Garcia III, 42, mostly makes his money from his ownership of Carvana, which he co-founded in 2012 alongside his 67-year-old father, a significant shareholder..
*During the Covid-19 pandemic, Carvana was one among the businesses that profited from shifts in customer behavior. In August 2021, the stock reached a record closing high of $370.10 a share as consumers eager to purchase cars were propelled by low-interest loans and stimulus money. Cuts to ad spending and car inventory followed the company's price, as well as the Garcias' fortunes, plunging into a sharp decline due to rising interest rates and accumulating debt. For the first time in six quarters, the online retailer increased car sales in the first three months of 2024, bringing in $3.1 billion in revenue. Continue reading: Carvana Stock Soars, But Short-Seller Losses Reach $3.9 Billion Despite its recent upswing in luck, the business nevertheless faces difficulties. It possesses over $6 billion in debt and continues to struggle with growing interest costs on its restructured debt. Both men have sold some stock by profiting from rising share prices. While his son has unloaded less than $1 million this year, the senior Garcia has sold $12 million worth of goods.n debt, and is currently battling growing interest costs on its restructured debt. Both men have sold some stock by profiting from rising share prices. While his son has unloaded less than $1 million this year, the senior Garcia has sold $12 million worth of goods.
Comments
Post a Comment