Cox Automotive Competitor Briefings

Part
01
of six
Part
01

Cox Automotive Briefing

What Cox Automotive is currently communicating about itself, the signs of a negative economic impact on the company, and how it is currently innovating includes the company's focus on re-opening its business, a decline in automotive unit sales forecast, and a revamp of its digital landscape.

Company Communication

  • According to an article published by Cox Automotive on May 28, 2020, the company highlights the results of a study conducted in the assessment of the short-term and long-term changes impacting the automotive industry following the COVID-19 crisis. Vanessa Ton, the senior industry intelligence manager at Cox Automotive noted that the company does not anticipate to see a shift in customer tastes and preferences for vehicles, but instead a change in their selection of pricing, cost of vehicle ownership, and monthly payments.
  • In an article by Reporter Newspapers published on May 28, 2020, following the Return to the Perimeter speaker series, Chris Kirk, the senior director, internal controls and governance, at Cox Automotive highlighted that the company has not experienced a decrease in productivity since the company's employees shifted to working remotely. The senior director noted this, in response to the notable reduction in the number of employees at its Perimeter Center campuses, from 6,000 to 100 during the COVID-19 crisis.
  • The senior director also noted that the company's focus has been shifting in the past four to six weeks to figuring out the process of reopening its offices with 55,000 employees spread across various locations both locally and globally. Chris also highlighted that the company has been setting up guidelines about measures to be followed at its facilities, such as social distancing and personal protective equipment in the aftermath of reopening its business.

Negative Economic Impact Signs

  • According to the US auto sales forecast report published by Cox Automotive on May 28, 2020, the company indicates anticipating a decline in annual unit sales based on the rate of sales in May 2020 compared to May 2019. According to the company, the May 2020 rate of sales is signaling eventual annual closing sales amounting to 11.4M units in the general automotive industry, which is a sharp decline compared to 17.4M unit sales made in May 2019. The company however notes that this is an improvement from April that recorded a historically low sales forecast amounting to 8.6M units. Additionally, Cox Automotive indicates that the new light-vehicle sales volume in May is expected to finish near 1.05M units, down 33% compared to May 2019, but up 49% from April.
  • In the forecast report, the company also indicated facing a negative demand shock and a negative supply shock in the automotive industry as a whole due to vehicle factories being mostly closed since late March and have only begun to reopen. The company noted that this signified low levels of new-vehicle inventory giving customers less choice, especially with popular vehicles such as pickup trucks and SUVs. The company also noted that with the gradual recovery of sales, inventory levels are anticipated to further go down causing some brands to face serious shortages, potentially delaying customer purchases, and causing them to switch brands, or move into the used-vehicle market.

Company Innovation

  • According to an article by Wards Auto published on May 27, 2020, featuring Sandy Schwartz, the president and CEO of Cox Automotive, the company is considering shifting its auction business to online-only platforms, following the COVID-19 crisis that led to the furlough of its 8,500 workers. Manheim, the company's vehicle re-marketing and auction brand, which began its all-digital migration about 10 years ago and had moved about 50% of its sales online by 2019, made an abrupt move to close about 80 of its auctions in the US and Puerto Rico, following the epidemic, and is now considering going 100% digital. The CEO indicated that digital auctions are better for the company, quicker to execute, and more safe for all stakeholders.
  • The company is also revamping the digital landscape for its online shopping sites, including Autotrader.com and KBB.com. According to the May 28 US auto sales forecast report, the volume of online communication sent to the company's dealerships increased by 150%. At the start of the COVID-19 crisis, Cox Automotive had about 1,000 Autotrader dealers with accomplished digital tools. The company has now developed its digital platforms to cater for 10,000 dealers.
Part
02
of six
Part
02

Carvana Briefing

Carvana is a relatively new entrant to the car sale industry in the United States. Provided below is information on recent corporate public communications, formal press releases made by the company, recent economic impacts upon Carvana as well as tactics Carvana is using to innovate its offering and organization structure that has been covered by recent media.

CARVANA COMMUNICATIONS IN PAST 7 DAYS

  • Carvana has not issued a formal press or news releases since 18 May 2020.
  • The company's corporate Facebook page has not relayed significant information with the past 7 days. The page has focused on highlighting examples of recent customers as well as promoting blog posts relating to general guidance on buying new or used cars.
  • Similarly, Carvana's corporate Twitter account has not informed of any key messages in the past 7 days. It has also focused on highlighting examples of recent customers and general car buying guidance.
  • A review of industry news publications has found no public statements or interviews given by Carvana executives in the past week. A recent news article published by Forbes on 29 May 2020 highlighted that Carvana did not respond to its journalists when seeking comment.

CARVANA BUSINESS UPDATE PRESS RELEASES IN PAST MONTH

  • On 18 May 2020 Carvana announced that it had commenced a public offering of its Class A common stock. Carvana is aiming to initially sell 5,000,000 shares of Class A common stock in negotiated transactions or otherwise, at market prices prevailing at the time of sale. Citigroup and Wells Fargo Securities will act as managers for the offering. Carvana stated that it will use the net proceeds from the public offering of Class A common stock for general corporate purposes and may use a portion to partially repay borrowings under its floor plan facility.
  • On 7 May 2020 Carvana revealed that it was expanding its offering to is offering to 100 additional cities across 24 states. Carvana CEO stated that 'As-soon-as-next-day touchless home delivery is now available in these cities, and a total of 261 markets across the country'. Carvana's expansion includes the retention of their peace of mind 7-day return policy. The press release also informed that 'customers can shop more than 20,000 vehicles on Carvana.com with high-definition, 360-degree virtual vehicle tours, simple financing, and select as-soon-as-next-day touchless home delivery, all in as little as 5 minutes'.
  • On 6 May 2020 Carvana announced its first-quarter financial results for 2020 for the period ending 31 March 2020. The company reported:
  • Retail Units Sold of 52,427, an increase of 43% year-on-year
    Revenue of $1.098 Billion, an increase of 45% year-on-year
    Total Gross Profit of $138.4 Million, an increase of 56% year-on-year
    Vehicles Purchased Directly from Customers up 157% year-on-year

RECENT ECONOMIC IMPACTS TO CARVANA

  • A NASDAQ article published on 28 May 2020 stipulated that Carvana stock had rebounded from a low of $22.16 per share during the COVID-induced March 2020 stock market fall to approximately $96 per share. It is the opinion of the author that current industry problems could potentially benefit Carvana's business model. The author also opined that as the U.S. reopens following the coronavirus outbreak Carvana's stock would stagnate as investors focus on other industries emerging from hibernation.
  • A Yahoo! Finance article of 27 May 2020 supports this view of investor optimism on Carvana stagnating. Carvana was in 52 hedge funds' portfolios at the end of the first quarter of 2020. There were 53 hedge funds in our database with Carvana positions at the end of the previous quarter. Yahoo! Finance calculations also demonstrated that Carvana isn't among the 30 most popular stocks among hedge funds.

CARVANA INNOVATION

  • On 26 May 2020 Yahoo! Finance reported on Carvana's atypical method of compensating its CEO when compared to businesses of similar value in the United States. Whilst CEO Ernest Garcia III typically receives a basic salary higher than the industry average his overall compensation package is much lower. On a sector level, around 20% of total compensation represents salary and 80% is other remuneration. Carvana pays out 30% of aggregate payment in salary. The author opines that this may be seen as a great positive by shareholders since the Carvana CEO is paid less than the average total compensation paid by other large companies.
  • On 27 May 2020 The Motley Fool financial site revealed that Carvana's innovative approach to inventory management is likely leading to growth in market share. Traditional growth in the car sales market has always required expensive new dealership locations, each of which only serves a local market. In contrast, Carvana pools its national inventory and makes it available to anyone within the markets it serves via its nationwide delivery infrastructure and online sales site.
Part
03
of six
Part
03

Carfax Briefing

Carfax did not publicly share any new information relating to its business, planned innovations, the COVID-19 pandemic, or negative economic impacts on the company in the past week. Below is an explanation of the research strategy, as well as some useful information.
  • Carfax did not make any announcements regarding itself, its operations, or the COVID-19 pandemic in the past week. Its last official press statement was released on May 20, 2020, where it recognized top service shops operating on its platform.
  • On May 30, Carville's Auto Mart announced a partnership with Carfax to provide vehicle history reports for its cars.
  • Carfax published a total of 39 articles and reports in the past month covering several topics such as car maintenance, recalls, technology, and private selling. Although the articles and reports focused on vehicles, they did not include any information relating to its business, the auto industry, or proposed innovations.
  • Between May 24 and May 30, Carfax was active and shared information on its Facebook, Instagram, Twitter, and LinkedIn social pages. However, all of its social media posts were either direct ads or infomercials, and none directly referenced the company, its planned innovations, current negative economic impacts, or the COVID-19 pandemic.
  • A search for statements by the company or its employees to third-party industry publications, such as MotorTrend, Auto Remarketing, Car and Driver, and MotorWeek, also proved abortive as none of the firm's employees made any comment to the press in the past week.
  • In addition, reputable business and financial news services, such as Bloomberg, Forbes, and CNN Money, did not report any recent negative economic impact of the current pandemic on the company. After an exhaustive search, we have concluded that Carfax did not issue any communication in the past week, either directly or through its employees, relating to its business, planned innovations, or the COVID-19 pandemic.
Part
04
of six
Part
04

Car AutoNation Briefing

AutoNation saw a 5% YoY decline in same-store sales and a 3% YoY decline in gross profit in Q1 2020. As of May 8, 2020, states that accounted for 51% of its revenue were still under "stay at home" orders. While AutoNation is still witnessing robust demand for GM's pickup trucks, plant shutdowns owing to the Covid pandemic have resulted in limited inventory levels of the trucks.

STATEMENTS AND PRESS RELEASES

AutoNation Q1 Results

  • AutoNation reported revenue of $4,667 million and a net loss of $232 million from continuing operations in Q1 2020 versus revenue of $4,981.8 million and a net profit of $92 million from continuing operations in Q1 2019.
  • Same-store revenue declined 5% YoY to $4.7 billion in Q1 2020 and same-store gross profit declined 3% YoY to $812 million.
  • In early April, states from where the company derived 95% of its business were under "stay at home" orders. Although the situation improved, as of May 8, states where the company derived 51% of its revenue were still under "stay at home" orders.
  • The "same-store New and Used retail unit sales" were down 19% in the last 10 days of April versus 52% in the first 10 days, and 37% for the whole month.
  • The company also implemented actions it had announced in April--"including placing employees on unpaid leave, implementing temporary base pay reductions for executive officers and associates, freezing corporate new hiring, reducing advertising spending, reducing discretionary spending, postponing capital expenditures, and reducing the Board of Directors' fees"-- to mitigate the impact of the pandemic.

Pricing of Senior Notes

  • AutoNation announced the pricing of senior unsecured notes aggregating to a principal amount of $500 million due 2030 at 4.750%. "The Company intends to use the net proceeds from the offering of the notes for general corporate purposes, which may include, in the short term, reducing borrowings under its commercial paper program and/or its revolving credit facility and, in the longer term, repaying its 3.350% senior unsecured notes due 2021."

Digital Sales

  • AutoNation saw its online-only sales surge in the months of March and April owing to "stay at home" orders mandated by the government. According to Mike Jackson, CEO of the company, "For digital, this whole disruptive period with corona is an inflection point from which there’s no turning back." "I think the bar has now been raised for any company that wants to perform in this marketplace is you need first-class digital capability, you need a safe environment for your customers and a safe environment for your associates," he added. "That is the Holy Grail going forward."
  • Online sales did not hurt the profitability of the company when compared to profits from traditional store sales.

Offer

  • AutoNation offered a "0% APR financing for up to 84 months"; "no payment for 6 months", and "25% off all service extended including parts & labor" offer. The offer was posted on social media channels of the company in May.

Re-Hiring

  • AutoNation brought back 1,200 of the 7,000 employees it had axed in the month of April.

IMPACT

Pickup Trucks Shortage

  • The limited supply of GM's pickup trucks, GMC Sierra and Chevrolet Silverado, was accentuated by the Covid pandemic as plants stayed shut through April and half of May. While GM planned to ramp up production of the pickup trucks by May 26, it wasn't able to source components in order to do so; 80% of the wiring harnesses for the trucks come from Mexico.
  • Automobile dealers have been complaining that there are not enough pickups to meet demand. In reference to the shortage of GM's pickup trucks, Mike Jackson, AutoNation's CEO, said: "If they can restart the pickup truck plants first, I’ll be standing here in line saying ‘send me all you can get'." The company is "eager to rebuild its stock of Silverado."

Unsecured Loan Given to Hertz

  • Hertz has an unsecured loan of $1.27 million from "AutoNation Shared Service Center" on its books. As Hertz has filed for bankruptcy, AutoNation may have to forgo the money.

Research Strategy

We searched auto portals, equity research reports, the company website, and media sources for the required information. However, there was limited information specific to the incremental impact of the coronavirus pandemic on AutoNation's business and innovations in its business operations in the week of May 24-30. We specifically looked for any digital-capability related and safety-related innovations the company has executed in the last week but found no such information.
Part
05
of six
Part
05

Car Gurus Briefing

CarGurus recently announced that it had improved the CarGurus Financing Feature to enable dealers to connect better with low-funnel shoppers during the COVID-19 pandemic. More information regarding the company statements/ press articles, negative economic impacts, and current innovations are provided below.

Company Statements

  • Research through CarGurus' newsroom, blog, and Dealer Resource Center reveals that it has published one formal press article over the past seven days.
  • On May 25, CarGurus announced that it was launching a new update to the CarGurus Financing Feature to enable dealers to connect better with low-funnel shoppers. With the new feature, "shoppers can prequalify for financing with lenders that the dealers already work with right from the VDP."
  • On May 29, in an interview with AM magazine, Jason Trevisan — CarGurus' online marketing CFO and President of international markets, reported that the company was doubling its efforts in the UK and Canada after "the decision to wind-down its business in Germany, Spain, and Italy" due to the COVID-19 crisis.
  • According to a May 28 report, the Director of Customer Insights at CarGurus, Madison Gross, said in a news release that the company had surveyed 500 Canadian car shoppers on their car-shopping sentiments in the COVID-19 era. She revealed that "consumers are mostly still planning major purchases such as a vehicle, but those sales are likely to be delayed until later in the year when economic activity begins to return to normal and certainty over economic outlook improves."

Negative Economic Impact on the Company

  • The share price of CarGurus has substantially compressed over the last three months, revenue growth rates have decelerated, and the company's revenue estimate for the year has been revised downwards to $504.43 million, a decrease of 14.35% from the previous year. These decreases are pointing towards the COVID-19 pandemic and a meaningful sign of an impending economic impact to the company.
  • The decision to wind-down its business in Italy, Spain, and Germany and the impending disturbances predicted for the used-cars trading industry might have affected investors' perception of the company. As a result, CarGurus's stock is considered "a bad long-term (1-year) investment" as the stock price is projected to dip to 13.391 USD from 25.990 USD in a year.

Company Innovations

  • CarGurus has introduced Remote Sales Solutions to help dealers sell remotely and respond to customer needs amid the COVID-19 pandemic. With this innovation, CarGurus can help dealers set up contactless services, home delivery, managed text and chat, dealer branding page, and consumer financing feature.
  • The company is also holding virtual meetings with its partners, like the one held on May 26 with Oppenheimer, as a social distancing measure in response to COVID-19.
Part
06
of six
Part
06

Car Buyer Behavior Changes 5/24 - 5/30

Consumers buying more cars in May 2020 compared to April 2020, low inventory and fewer choices leading to a car-buying frenzy, greater online sales of cars, and greater consumer emphasis on health features inside cars post-COVID-19 are some consumer behavior shifts observed in the US automotive industry during the week of May 24-May 30, 2020. The top-5 unique search queries related to car buying in the past 7 days are about buying used and new cars, buying cars in general, buying used rental cars from Hertz Corporation, and car insurance.

Consumers Buying More Cars in May 2020 Compared to April 2020

  • As per a forecast released by Cox Automotive on May 28, 2020, the sales volume of new light vehicles in May 2020 has increased by 49% compared to the historic low witnessed in April 2020, indicating a positive shift in the automotive industry. However, the sales for May 2020 is still 33% lower than that of May 2019.
  • The opening of car dealerships and states easing their lockdown criteria have contributed to the upward sales curve of cars in May 2020.
  • Also, attractive offers on cars like special Memorial Day discounts and 0% financing up to 84 months have driven the sales of cars in May 2020 compared to April 2020.
  • As per results of the "COVID-19 Digital Shopping Study 2.0", a survey of 1,125 US car buyers (including 575 new shoppers) conducted by Cox Automotive and published on May 28, 2020, 48% of the new vehicle shoppers who have delayed their purchase due to COVID-19 stated that they would buy a new vehicle within 30 days once all the restrictions are lifted. 31% said that they would buy within 1-2 months, 16% said that they would buy within 3-4 months, while only 5% stated their intention of buying after 5 months.

Car Buying Frenzy Among Consumers Due to Low Inventory and Fewer Choices

  • Owing to vehicle manufacturing having been closed since March 2020 and consumers buying fewer cars through March 2020 to April 2020 due to the lockdown, the US car industry is facing a simultaneous negative supply shock and a negative demand shock.
  • As per industry reports, the new-vehicle inventory volume is at its lowest level in more than a year. The J.D. Power Auto Industry Impact Report, published on May 28, 2020, has predicted that the inventory level will decrease by 1.1 million-2.5 million units in June 2020.
  • The low inventory level has caused a shortage of choices for consumers, particularly in the SUV category.
  • Due to the above, dealers that have opened are already seeing a car-buying frenzy among consumers for their preferred brand and model of car. In the words of Chad Wilson, GM of Wilson Ford at Saginaw and Midland Ford, a customer drove from Texas to Saginaw, Michigan, to purchase a car because he could not get his preferred model and color anywhere else.

Greater Online Sales of Cars

  • Due to the COVID-19 lockdown and car dealerships being closed, there has been a significant rise in online and digital sales of cars in the US.
  • As per a report by Cox Automotive published on May 28, 2020, online car shopping sites like KBB and Autotrader have seen record traffic on weekends during the COVID-19 lockdown period, as car buyers spent more time online than in dealership lots. There has been a significant rise in online traffic related to vehicle description page views, and the online communication of car buyers with dealers has increased by 150%.
  • As per Cox Automotive's "COVID-19 Digital Shopping Study 2.0," published on May 28, 2020, every 2 out of 3 respondents stated that they would buy their cars 100% online, indicating the growing preference of US car buyers to buy online.
  • Through text messages, phone calls, and Zoom video-conferences with sales representatives at car dealerships, more and more customers are buying cars and doing the associated paperwork online. Paragon Honda, a car dealership in New York City, sold 70 cars online in March 2020, 378 cars online in April 2020. The dealership expects to sell more than 500 cars online in May 2020.

Greater Consumer Emphasis on Health Features Inside Cars Post-COVID-19

  • In addition to the current safety features installed inside cars, greater consumer emphasis on health post the COVID-19 landscape is forcing more car makers to install health features inside their cars, like heart rate monitoring, massaging seats and headrests, adjustable lighting based on the driver's emotional state, and specific COVID-19 related features.
  • Major car manufacturer Jaguar Land Rover (JLR) is developing a special ultraviolet (UV-C) light sanitizing unit for killing viruses, germs, and bacteria. The system will be installed in the HVAC systems of future models.
  • As per Cox Automotive's "COVID-19 Digital Shopping Study 2.0," published on May 28, 2020, 36% of new car buyers indicated that they would install additional air quality features inside their vehicles post-COVID-19.
  • With COVID-19 being a major health issue, industry experts expect more car manufacturers to install similar health features inside their cars. Additional safeguards combating viruses and bacteria would go a long way to further improve the brand image of these manufacturers by conveying their emphasis on safety, innovation, and customer-centricity.


Top Search Queries and Topics

Top-5 Car Buying Search Queries

Buying a Used Car

  • "Buying a used car" or "buying used car" is the top search query related to car buying on Google in the past 7 days. This search query is related to purchasing automobiles as it focuses on the process associated with buying used cars in the US, such as this article that appeared on CNN Business on May 27, 2020, and provided tips and insights to consumers on how to purchase used cars.

Buying a New Car

  • "Buying a new car" or "buying new car" is the second-most unique searched query related to car buying on Google in the past 7 days. This search query is related to purchasing automobiles as it not only focuses on the process associated with buying new cars in the US but also discusses the latest car models to hit the market. An example is this article on "Car And Driver," published on May 30, 2020, that discusses the price and specification of the new plug-in-hybrid Prime model of Toyota's RAV 4.

Cars

  • "Cars" is the third-most unique searched query related to car buying on Google in the past 7 days. This search query is related to purchasing automobiles as it offers results relating to the car marketplace in general, like redirecting to this website.

Hertz Car Buying

Car Insurance

  • "Car insurance" rounds up the top-5 list as the fifth-most unique searched query related to car buying on Google in the past 7 days. This search is related to purchasing automobiles as it brings up auto insurance options and quotes like this website of Geico.


Research Strategy

To identify ways in which consumer behavior is shifting within the US automotive industry in the week of May 24-May 30, 2020, we searched for recent surveys that covered the purchase intentions and insights of US car buyers when it came to buying cars post the COVID-19 landscape. We also searched for blogs and articles from industry experts that reported the recent sales figures and car-buying trends. We used only those resources that have been published between May 24, 2020, and May 30, 2020, and relate to the US car industry. These results have been presented in the above research report.

To identify the top-5 search queries and topics during the past 7 days related to automobile purchasing, we leveraged past 7-day Google Trend topics and search queries related to "car buying." Even though "car rental" ranks as the fifth-most searched query on Google in the past 7 days, we have not considered it since it does not relate to automobile purchases. Since "car insurance" came next and it is a major consideration during automobile purchases, we selected it as our fifth-most searched query.
Sources
Sources

From Part 02
Quotes
  • "Carvana Co. (NYSE: CVNA), a leading e-commerce platform for buying and selling used cars, today announced that it has commenced a public offering of its Class A common stock. Carvana is proposing to sell 5,000,000 shares of Class A common stock. The underwriters will offer the shares from time to time for sale in negotiated transactions or otherwise, at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. The last reported sales price of Carvana’s Class A common stock on May 18, 2020 was $98.59 per share. "
  • "Citigroup and Wells Fargo Securities will act as book-running managers for the proposed offering. Carvana intends to use the net proceeds from the public offering of Class A common stock for general corporate purposes. Carvana may use a portion of the net proceeds from the offering to partially repay borrowings under its floor plan facility until it identifies other specific uses. "
Quotes
  • " is offering as-soon-as-next-day touchless home delivery to 100 additional cities across 24 states to provide those who need to purchase a vehicle with an entirely online car buying experience with a great selection, great prices and great customer service. "
  • "As-soon-as-next-day touchless home delivery is now available in these cities, and total of 261 markets across the country"
  • "Carvana provides customers with an easy, safe way to purchase a vehicle entirely online from home. This includes the peace of mind of a 7-day return policy, which gives customers a week to ensure their vehicle fits their life. Customers can shop more than 20,000 vehicles on Carvana.com with high-definition, 360-degree virtual vehicle tours, simple financing, and select as-soon-as-next-day touchless home delivery, all in as little as 5 minutes. "
Quotes
  • "a leading e-commerce platform for buying and selling used cars, today announced financial results for the quarter ended March 31, 2020. Carvana’s complete first quarter 2020 financial results and management commentary can be found by accessing the Company’s shareholder letter on the quarterly results page of the investor relations website. "
  • "During this unprecedented time, our number one priority is the health and safety of our employees and customers. This quarter we implemented Touchless Delivery to offer the safest and easiest experience to buy a car," said Ernie Garcia, founder and CEO of Carvana. “As the pioneers of online car buying we’re proud to be leading our industry as shifts in customer behavior accelerate"
Quotes
  • "While not entirely an e-commerce play, investors perceive today’s headwinds as a potential tailwind for the company. Considering the automotive dealer’s business model (customers can buy a car without walking into a dealership), this perception isn’t far off the mark. Yet with shares bouncing back after cratering in March, it may be prime time to sell. E-commerce stocks have been a smart place to invest during “shelter-in-place,” but as coronavirus enters the rearview mirror and investors bounce back into hard-hit airline, casino, and retail stocks, it’s easy to see recent “hot stocks” like this one take a breather for the time being."
  • "Investors who shrewdly saw that the pandemic wouldn’t hurt e-commerce plays as badly saw quick gains. Assuming they bought in March and are still holding shares today. Shares traded as low as $22.16 per share during the panic selling. Now? Shares change hands around $96 per share."
Quotes
  • "CVNA was in 52 hedge funds' portfolios at the end of the first quarter of 2020. There were 53 hedge funds in our database with CVNA positions at the end of the previous quarter. Our calculations also showed that CVNA isn't among the 30 most popular stocks among hedge funds"
Quotes
  • "Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Carvana. On a sector level, around 20% of total compensation represents salary and 80% is other remuneration. Carvana pays out 30% of aggregate payment in the shape of a salary, which is significantly higher than the industry average. At first glance this seems like a real positive for shareholders, since Ernie Garcia is paid less than the average total compensation paid by other large companies."
Quotes
  • "It's been hard for any traditional player to gain meaningful market share because growth has always required expensive new dealership locations, each of which only serves a local market. In contrast, Carvana pools its national inventory and makes it available to anyone within the markets it serves via its nationwide delivery infrastructure. By serving virtually the whole country from its single online store, Carvana could be the first used car retailer to gain significant share of the industry. "
From Part 04