Fadem wrote that Carvana’s fourth-quarter vehicle sales are likely to fall short of Wall Street expectations. Concerns about Carvana’s liquidity and how much gross profit it brings in per vehicle sold are likely to linger, he added.

In a research note Thursday, Piper Sandler analyst Alexander Potter wrote that slashed estimates are forcing the firm’s price target for Carvana to $21 — down from $45 — but the firm does not think Carvana will go bankrupt.

Carvana shares closed Friday at $11.37. That is an improvement from its all-time-low closing price of $3.72 on Dec. 27 but a plunge from its $360-plus closing share price highs recorded in mid-2021.

The retailer’s stock was down about 8 percent to $10.48 in trading around 1:30 p.m. Tuesday.