Carvana Needs to Show Cost Pressures Are Transitory -- Market Talk

Dow Jones02-19

1025 ET - Investors will be watching to see whether Carvana's heightened reconditioning costs are transitory or reflect a more lasting headwind, Morgan Stanley analysts say in a note. Those costs brought down retail gross profit per unit for the quarter. The company sees a three-six month timeline to work through these pressures, and is projecting a sequential increase in retail GPU in 1Q. "The key question for investors here is how structural the cost pressures are as the company flexes into this next leg of growth," the analysts say, maintaining their $450 price target and overweight rating. Carvana slides 6%. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

February 19, 2026 10:25 ET (15:25 GMT)

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