ACVA Shares Plummet 8.10% on Earnings Miss, Revised Guidance, and Macro Headwinds

The share price of ACV Auctions (ACVA) plummeted to a record low on October 7, 2025, with an intraday decline of 6.60% and a cumulative drop of 8.10% over two trading days. The selloff reflects a broader erosion of investor confidence following a series of operational and strategic challenges that have weighed on the company’s performance in recent months.

Recent earnings reports underscored the stock’s struggles. ACVA’s Q2 2025 revenue rose 20.6% year-over-year to $193.7 million but fell short of analyst estimates by 1.2%. Downwardly revised EBITDA guidance for Q3 2025 further signaled ongoing difficulties in navigating a sluggish automotive market. Analysts responded by lowering price targets, with several major firms reducing expectations by $1–$2 per share, citing weak demand for used vehicles amid high borrowing costs and cautious consumer spending.

Institutional investor activity has also highlighted market skepticism. Executives and insiders sold tens of thousands of shares in July and August, while firms like Envestnet and Royce & Associates LP trimmed their holdings. However, some long-term buyers, including state pension funds, have added to their positions, suggesting a divergence in views on the company’s future potential. Meanwhile, ACVA expanded its credit facility to $250 million in July, a move aimed at bolstering liquidity but one that has raised questions about capital allocation efficiency.

Strategic initiatives, such as extending no-reserve auctions to four days per week, have yet to translate into measurable gains. The company’s partnership with Amazon, announced in May, remains unproven in terms of near-term impact, as does its focus on cost optimization. Broader macroeconomic headwinds, including the Federal Reserve’s reluctance to cut rates, have compounded pressure on consumer demand for used vehicles—a core driver of ACVA’s business model.

Despite these challenges, ACVA’s stock remains a high-risk, high-reward proposition. While the recent volatility reflects near-term uncertainty, the company’s long-term success will depend on its ability to execute strategic partnerships and adapt to shifting market dynamics. Investors are likely to remain cautious until clearer signs of recovery emerge, particularly as the company’s year-to-date total return lags sharply behind the S&P 500.