On June 2, Carvana Co. declined 5.06% in regular trading, trading at $65.69/share, with trading volume of $142 million. The stock had previously staged a corrective rebound supported by strong Q1 earnings, but that rebound momentum has now clearly exhausted, with intensifying selling pressure driven by Q2 profitability concerns.
On the news front, market participants remain worried that second-quarter retail unit gross profit may face headwinds from pricing lag effects. Despite a stellar Q1 performance — EPS of $1.69 beating consensus estimates of $1.50 to $1.58, and revenue of $6.432 billion representing 52% year-over-year growth — the uncertainty surrounding Q2 earnings power continues to suppress sentiment. RBC Capital Markets had previously raised its price target to $460, yet near-term technical momentum has deteriorated as the post-earnings recovery rally faded over recent sessions.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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