Yet another measure of the tech market’s downswing:

The company had just posted a “confidence shattering quarter,” in the words of J.P. Morgan, as it reported a wider-than-expected loss of $2.89 a share, much higher than the FactSet’s expected loss of $1.44 a share…. Since January, Carvana shares have fallen 83.4% to $38.40 at the time of writing. Market capitalization collapsed over the period to $6.82 billion from $20.84 billion on December 31. Basically, $14 billion of market cap has been wiped out in less than five months.

You are always looking at how much money people have vs how much things cost to judge where the market will be going. To the extent companies like this are a measure of that, the fact a company selling cars in a vehicle shortage cannot be profitable is a concerning data-point to be filing away.

With respect to the individual stock, the question is whether this stock will be more profitable as time goes on, over the duration in which you plan to be invested. Although some investors apparently think so, you have to ask if buyers are comfortable buying something like cars, in a sector long viewed as deceptive, sight unseen.