Article Summary Despite a Shaky Start, Online Used Car Seller Carvana Sold

Article Summary
Despite a shaky start, online used car seller Carvana sold all 15 million stock shares in its IPO and raised about $225 million. Initially priced at $15 per share, the stock closed at $11.10 per share at the end of the first trading day. The Phoenix-based company, known for its automated car vending machines, offers free next-day delivery to residents in 24 markets across the United States. Carvana, founded in 2012, has seen large revenue growth but has never reported a profit., losing about $93 million in 2016. The company also said in its S-1 IPO filing that it expects losses to continue in the near future.
Source: Kirsten Korosec, "Used Car Vending Machine IPO Sputters In First Day of Trading," Fortune, April 28, 2017.
-Stock prices are

A) based more on the current profitability of firms than on their expected future profitability.
B) based less on the current profitability of firms than on their expected future profitability.
C) based equally on the current profitability of firms and on their expected future profitability.
D) not based on the current profitability of firms or on their expected future profitability.