The 30% Rise in Carvana's Stock Price Attracted New StockTwits Followers

On Thursday, shares of Carvana Co (NYSE:CVNA) increased by around 30%, erasing a chunk of the previous day's precipitous losses due to worries over the used vehicle seller's liquidity.

Carvana topped the list of companies that attracted the most new followers on StockTwits, a platform utilized by inexperienced traders.

Following a report by Bloomberg that Carvana was speaking with attorneys and investment bankers for debt management alternatives, the company's stock plunged by more than 40 percent on Wednesday to a new low.

This year, the company was obliged to downsize its employees owing to a decline in demand for used automobiles and high costs, hence cutting its expenses.

Its notes maturing in 2025 were under pressure at around 42 cents on the dollar, above the month-ago low of 40 cents but below Wednesday's closing price of almost 43 cents.