Carvana Co.

CVNA position short Gavin Baker, Atreides Management

Thesis

Carvana was trading at about 53x EV/EBITDA, a significant premium to its peers, and there were undisclosed SEC investigations that the market was unaware of. This created an asymmetrical risk to the downside, leading to a belief that the stock was misunderstood and overvalued.

Did it work?

inconclusive confidence: low

Without specific price performance data or a defined time frame since the pitch, it's difficult to assess whether the thesis has played out. The mention of undisclosed SEC investigations could indicate potential risks, but without further developments or price movements, the outcome remains uncertain.

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