-- Carvana Stock Drops 10% Thursday, Deepening Its Recent Rout. Here's Why [Stocks Climb Amid Easing AI Fears][Berkshire Sold These 2 Big Tech Stocks in Q4][What to Expect from Walmart Earnings Thursday][What Is an Olympic Gold Medal Worth?]- Top StoriesWith Thursday's drop, Carvana shares have lost about one-quarter of their value since the start of the year.Kevin Carter / Getty ImagesClose### Key Takeaways- The company said some costs came in higher than anticipated, and warned it could face elevated vehi ...

Key Takeaways Carvana shares tumbled Thursday after the online car marketplace reported some fourth-quarter profit metrics that came in below expectations. The company said some costs came in higher than anticipated, and warned it could face elevated vehicle reconditioning costs in the first quarter. Carvana stock backed into reverse on Thursday. Shares of Carvana (CVNA) dropped 8% close to just under $333, a day after the online used car marketplace reported weakness in some key profitability metr ...

Core Viewpoint - Block & Leviton is investigating Carvana Co. for potential securities law violations following a report alleging that the company's profitability is based on undisclosed related-party transactions [1][2][4]. Group 1: Investigation Details - Carvana's shares fell over 20% on January 28 after Gotham City Research reported that the company's profitability relies on undisclosed transactions with DriveTime and Bridgecrest [2]. - The report claims that DriveTime incurred over $1 billion in cash losses while leveraging up to 20x to 40x EBITDA to support Carvana's earnings [2]. - Additionally, it is alleged that Bridgecrest marked down billions in loans as Carvana recognized gains on loan sales [2]. Group 2: Eligibility and Actions - Investors who purchased Carvana common stock and experienced a decline in share value may be eligible to recover losses, regardless of whether they sold their investment [3]. - Block & Leviton is actively investigating potential securities law violations and may file actions to recover losses for affected investors [4]. Group 3: Whistleblower Information - Individuals with non-public information about Carvana are encouraged to assist in the investigation or report to the SEC under the whistleblower program, potentially receiving rewards of up to 30% of any successful recovery [6]. Group 4: Firm's Reputation - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].

Core Viewpoint - Carvana's stock experienced a significant drop of over 9% during trading, despite reporting record-high retail sales and revenue for Q4 2025 [1] Financial Performance - In Q4 2025, Carvana's retail sales reached 163,522 vehicles, marking a 43% year-over-year increase [1] - The total revenue for the quarter was $5.603 billion, reflecting a 58% year-over-year growth [1] - The net profit for Q4 was $951 million, with a net profit margin of 17.0%, both achieving historical highs [1]

分组1 - Carvana Co. shares fell 14% to $310 following the release of Q4 results, which showed decent performance but raised concerns about profitability trends [1] - The company's gross profit per vehicle decreased due to a weaker wholesale market, contributing to the stock's decline [1] - The primary pressure on the stock was attributed to the lack of strong profitability indicators despite the reported results [1]

Core Insights - Carvana (CVNA) reported Q4 2025 earnings of $4.22 per share, exceeding the Zacks Consensus Estimate of $1.13 and up from 56 cents in the previous year, driven by strong revenue growth of 58% year over year to $5.6 billion, surpassing the estimate of $5.22 billion [1][8] Financial Performance - Total gross profit reached $1.05 billion, a 38% increase year over year, with gross profit per unit (GPU) at $6,427, down from $6,671 in the prior year [2] - Selling, General and Administrative (SG&A) expenses were $627 million, reflecting a 26.9% increase year over year [2] - Adjusted EBITDA for Q4 2025 was $511 million, with an adjusted EBITDA margin of 9.1%, down from 10.1% in Q4 2024 [2] Segmental Performance - Retail vehicle sales totaled $4.16 billion, a 62.9% increase year over year, with the number of vehicles sold rising 43% to 163,522 units, exceeding estimates [3] - Wholesale vehicle sales amounted to $988 million, up 45.7% year over year, with unit sales increasing 66.2% to 81,050 vehicles [4] - Other sales and revenues grew 44.8% year over year to $459 million, with GPU at $2,807, slightly up from the previous year but below estimates [5] Financial Position & Outlook - As of December 31, 2025, Carvana had cash and cash equivalents of $2.33 billion, up from $1.72 billion a year earlier, while long-term debt decreased to $4.83 billion from $5.26 billion [6] - The company anticipates strong growth in retail units sold and adjusted EBITDA for full-year 2026, with expected sequential gains in Q1 [6] Market Position - Carvana currently holds a Zacks Rank of 3 (Hold), while competitors like Modine Manufacturing Company, Strattec Security Corporation, and Ford Motor Company have a Zacks Rank of 1 (Strong Buy) [7]

Core Viewpoint - Carvana's stock experienced a decline following the release of mixed fourth-quarter results, with significant revenue growth but profits falling short of expectations [1][2]. Financial Performance - Carvana reported fourth-quarter revenue of $5.60 billion, exceeding the estimated $5.27 billion, marking a 58% increase year-over-year [1]. - Retail units sold reached 163,522, surpassing the estimated 157,226, also reflecting a 58% increase [1]. - Adjusted EBITDA was reported at $511 million, below the expected $535.7 million, with an adjusted EBITDA margin of 10.1%, missing the 10.4% estimate [2]. Market Reaction - Following the results, Carvana's shares fell by 3% in early trading and had previously dropped as much as 20% in after-hours trading [2]. - Analysts have mixed reactions, with some suggesting to maintain positions in the stock despite the volatility [5][6]. Future Outlook - Carvana anticipates significant growth in retail units sold and adjusted EBITDA for the full year 2026, with expectations of sequential increases in Q1 2026, assuming stable market conditions [3]. - The company did not provide specific estimates for Q1 results, leading to uncertainty among investors [2]. Cost Considerations - The fourth-quarter results were affected by higher reconditioning costs for vehicles, with expectations of continued elevated costs in Q1, although higher profit per unit is projected [4]. Strategic Positioning - Carvana's CEO emphasized the company's growth trajectory, aiming to sell 3 million cars annually with adjusted EBITDA margins of 13.5% by 2030-2035 [5]. - Analysts noted the company's strategy of prioritizing market share over margin expansion, which may influence investor sentiment [6]. Controversies - Carvana's stock faced pressure earlier in the year due to allegations from short seller Gotham City Research, claiming the company overstated earnings by not fully disclosing benefits received from DriveTime, potentially inflating earnings by about $1 billion for 2023 and 2024 [7].

Carvana (CVNA) stock tumbled on Thursday after the company posted mixed results for its fourth quarter, with revenue jumping but profits missing estimates. The e-commerce used car dealer posted revenue of $5.60 billion versus $5.27 billion estimated per Bloomberg, up 58% compared to a year ago. Carvana said retail units sold hit 163,522 compared with 157,226 estimated, a jump of 58%. But Carvana reported adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $511 million v ...

Core Insights - The article highlights the expertise of James Foord, an economist with a decade of experience in analyzing global markets, and his leadership role in The Pragmatic Investor, which focuses on building diversified investment portfolios [1] Group 1: Company Overview - The Pragmatic Investor aims to guide investors of all levels by providing insights into global macro trends, international equities, commodities, technology, and cryptocurrencies [1] - The platform offers features such as a dedicated portfolio, weekly market updates, actionable trades, technical analysis, and a chat room for investor interaction [1]

Carvana Co (NYSE:CVNA) reported upbeat sales for the fourth quarter after the market close on Wednesday.Carvana reported fourth-quarter revenue of $5.60 billion, beating analyst estimates of $5.26 billion, according to Benzinga Pro. The company reported fourth-quarter earnings of $4.22 per share, which may not compare to estimates."In 2025, Carvana grew 43% year-over-year, delivered record unit economics, and passed significant value back to customers through better selection, faster delivery times and lowe ...