Carvana Co. (CVNA), headquartered in Tempe, Arizona, operates auction sites and an e-commerce platform for buying and selling used cars. With a market cap of $79.8 billion, the company offers test drives, vehicle financing, and car reviews. Shares of this online used car retailer have underperformed the broader market over the past year.
CVNA has gained 5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.2%. In 2026, CVNA stock is down 14.1%, compared to the SPX's 13.2% rise on a YTD basis. A $20 Billion Reason Why Intel Stock Is in Focus Marvell Technology (MRVL) Stock Might Offer a Quick Bounce Before Earnings Most Analysts Still Aren't Bullish on Tesla Stock, Even After Recent Selloff.
Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Narrowing the focus, CVNA's underperformance is also apparent compared to State Street SPDR S&P Retail ETF (XRT). The exchange-traded fund has gained about 6.7% over the past year.
Moreover, the ETF's 4.1% gains on a YTD basis outshine the stock's double-digit losses over the same time frame. CVNA has underperformed due to operational cost pressures, shrinking profit margins per unit, and elevated financing rates dampening broader used-car demand. Although retail unit volumes grew, performance was bogged down by rising reconditioning expenses as new inspection centers ramped up, alongside a contraction in its Adjusted EBITDA margins.
Investor sentiment was also dampened by a conservative EBITDA outlook, high auto-loan interest rates, and valuation concerns. On Jul. 29, CVNA reported its Q2 results, and its shares tumbled over 7% in the following trading session. Its EPS of $0.42 matched Wall Street expectations.
The company's revenue was $7.4 billion, exceeding Wall Street forecasts of $7 billion. For the current fiscal year, ending in December, analysts expect CVNA's EPS to fall 1.2% to $1.67 on a diluted basis. The company's earnings surprise history is mixed.
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