ACV Auctions: Assessing Valuation Amidst Sharper Losses and Lowered Outlook

ACV Auctions (ACVA) shares plunged 38% after Q3 results revealed a larger net loss and reduced full-year forecasts. The earnings update triggered heavy investor selling, with the 1-year total shareholder return now sitting near -74%. Investors must decide whether ACV Auctions is fundamentally undervalued or if the current share price fairly reflects ongoing risks and stalled growth prospects. The ongoing integration of advanced AI and machine learning is expected to drive above-industry growth in auction volumes and support margin expansion.