CVNA stock has been on a tear this year, outperforming most tech stocks even. The stock was priced as if it was heading for bankruptcy a year ago in October 2023 at around $6. This week, a year later, it hit a post-earnings high of $259 likely based on panicked short covering, though the fundamentals are not great (high balance sheet debt that cannot be ignored). The RSI on the daily chart reached nearly 90, which is extremely overbought. I shorted at $248 and have set a stop limit buy order.
I do think they have some things going for them as the used car market will probably be supply constrained due to numerous flooding disasters around the U.S. this year, which also provides a lot of new prospective buyers needing to replace their totaled vehicles. But this is strictly a short-term mean reversion play.
Update: Buy stop triggered at $229.00 on 11/4/24, a 7.7% drop over a couple of days.