Carvana Stock Tumbles Ahead of Early Q2 Earnings Report

by webmaster

Carvana (ticker: CVNA), the leading online auto retailer, suffered a significant blow as its stock tumbled 9% in premarket trading. The company unexpectedly advanced its second-quarter earnings report by more than two weeks, causing concern among investors.

Previously scheduled for August 3rd, Carvana will now reveal its earnings before the market opens on Wednesday. This sudden change in plans has raised eyebrows and fueled speculation about potential negative developments.

Despite this setback, Carvana’s stock has experienced a remarkable ascent, skyrocketing by an impressive 740% since the beginning of 2023. In fact, it closed on Tuesday with a notable gain of 9%.

However, J.P. Morgan analysts decided to downgrade the stock from Neutral to Underweight last Friday. Their rationale behind this move was the belief that Carvana’s valuation has exceeded a justifiable level given recent improvements in the company’s business. They have set a target price of $10 for the stock, which closed at $39.80 on Tuesday.

As Carvana prepares for its earlier-than-expected earnings announcement, analysts are projecting a second-quarter loss of $1.20 per share on sales totaling $2.6 billion, according to estimates from FactSet. Furthermore, for the entire year, experts anticipate a loss of $5.57 per share.

It remains to be seen how Carvana will fare with its financial results, but investors will undoubtedly be keeping a close eye on the outcomes.

Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >
Willing to try automated trading?
See the best forex robots rating to make the right choice.
Explore the list here >

Related Articles

Leave a Comment

− 1 = 1