MStudioImages/E+ via Getty Images Some of the year’s biggest laggards are leading the market on Tuesday.
Among the gainers, internet retail names were among those seeing the biggest bounces. For example, Carvana (NYSE: CVNA ) notched a nearly 20% gain into afternoon trading, while Wayfair (NYSE: W ), Revolve Group (NYSE: RVLV ), and Etsy (NASDAQ: ETSY ) roared to double digit gains at intraday highs as well. The latter led the S&P in the waning hours of US trading on Tuesday while the broader move aided the tech-heavy Nasdaq’s turn into the green in afternoon trading.
The jump for Carvana ( CVNA ) coincided with a note from Wedbush analyst Seth Basham defending a bullish view of the depressed stock.
“While we see near-term profit pressure, we believe that the company has the financial and operational resources to stabilize the business and that market conditions should improve within the next year,” he told clients on Tuesday. “Accordingly, we remain cautious near-term and lower our price target to $50 (from $90) but recommend CVNA for long-term investors.”
The substantial run upward for many of the internet retail names, including Carvana ( CVNA ) flips the script that has been followed for much of the year, as Carvana ( CVNA ) stock slid nearly 90% in the first half of the year while Wayfair ( W ) waned nearly 80% in its own right.
It is worth noting that many of the names moving upward across the eCommerce space on Tuesday are heavily shorted. According to Seeking Alpha data, both Carvana ( CVNA ) and Wayfair ( W ) tout short interest of over 30%. Still, it is unclear if the broader move across the sector can be simply explained by one factor.
No matter the impetus, the relief rally on Tuesday is certainly a welcome […]
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