Plunging used car prices are probably why $CVNA and $KMX have plunged significantly
Even if the decrease in used car prices is small, it is a sign that used car dealers are going to see themselves losing their pricing power fast. That's why investors are pulling out of $KMX $CVNA and other used car dealers.

Does it signify that the chip shortage is going away soon? No. Companies like $F are reporting sales declines because they can't produce more vehicles.

April 2022 Bloodbath - Names Down >30% Since April 1
April 2022 was one of the worst market months of all time. In fact, it was the worst since October 2008. Here are 100 stocks down >30% since April 1:


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Round Trips
There have been a ton of major "round trips" since 2020. These are names that soared higher in 2020 and have come all the way back . Here are a bunch in no particular order:

EDIT: I am calling these the Covid-180's

$FB - Meta Platforms, Inc. - Internet Content & Information - $534.71B

$NFLX - Netflix, Inc. - Entertainment - $92.44B

$SHOP - Shopify Inc. - Software - Application - $61.52B

$SE - Sea Limited - Electronic Gaming & Multimedia - $53.12B

$U - Unity Software Inc. - Software - Application - $24.17B

$SPOT - Spotify Technology S.A. - Internet Content & Information - $23.55B

$RBLX - Roblox Corporation - Electronic Gaming & Multimedia - $19.97B

$CHWY - Chewy, Inc. - Internet Retail - $15.12B

$ROKU - Roku, Inc. - Entertainment - $14.01B

$PINS - Pinterest, Inc. - Internet Content & Information - $13.67B

$CVNA - Carvana Co. - Internet Retail - $13.47B

$PTON - Peloton Interactive, Inc. - Leisure - $6.73B

$MRTX - Mirati Therapeutics, Inc. - Biotechnology - $4.01B

$INMD - InMode Ltd. - Medical Devices - $2.55B

$FVRR - Fiverr International Ltd. - Internet Retail - $2.10B

$CDLX - Cardlytics, Inc. - Internet Content & Information - $1.47B

$NEO - NeoGenomics, Inc. - Diagnostics & Research - $1.41B

$NVTA - Invitae Corporation - Diagnostics & Research - $1.29B

$TREE - LendingTree, Inc. - Mortgage Finance - $1.28B

$SNBR - Sleep Number Corporation - Furnishings, Fixtures & Appliances - $1.11B

$TTCF - Tattooed Chef, Inc. - Packaged Foods - $737.26M
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Higher interest rates = Lower car sales
Most cars are financed. With higher interest rates, consumers will have higher monthly payments. We could be seeing more negotiating in the dealerships as customers demand a lower price on their vehicle in exchange for enduring the higher interest rates.

It's one of the reasons why $CVNA got downgraded.
Used car dealers lose out on the auto supply chain crisis
$KMX $CVNA and many other used car dealerships are struggling to grow their revenues as their inventories have been depleted.

Many used car dealers are complaining that the lack of cars coming into their lots are making it harder for them to meet the demand for used cars.

Wall Street is becoming pessimistic on the used vehicle market because those firms can’t capitalize on the high used vehicle prices if they don’t have vehicles to sell.
So the demand is high and the supply is low. Excuse the Econ 101 here but isn’t that the point at which equilibrium price is usually the highest? But these companies just literally can’t get their hands on cars so they aren’t able to take advantage of these higher prices?
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