CarMax Pulls Financial Targets Amid Trade War Chaos

Ladies and gentlemen, buckle up! We're diving headfirst into the wild world of CarMax, the used-car giant that's just pulled a massive U-turn on its financial targets. Why? Because the trade war is wreaking havoc on the market, and CarMax isn't taking any chances. Let's break it down!



First things first, CarMax reported its quarterly earnings on April 10, 2025, and the results were a mixed bag. On one hand, demand for used cars is through the roof—CarMax sold more vehicles than it has in over three years, and the average price per car finally snapped an eight-quarter streak of declines. But on the other hand, profits rose less than expected, and the stock took a nosedive, falling as much as 21% in a single day. Ouch!

Now, let's talk about the elephant in the room: the trade war. President Trump's tariffs are expected to drive up prices for new cars by 25%, and that's going to have a ripple effect on the used car market. CarMax knows this, and they're not messing around. They've suspended their long-term financial targets, citing "the potential impact of broader macro factors." In other words, they're playing it safe until the dust settles.

But here's the thing: CarMax isn't the only company pulling back on its targets. Delta Air Lines just did the same thing, and the list is growing. The market hates uncertainty, and right now, there's plenty of it to go around. So, what does this mean for investors?

Well, it's a double-edged sword. On one hand, CarMax's decision to suspend its targets is a sign of caution, and that's never a good thing. But on the other hand, it's also a sign that the company is being proactive and adaptable in the face of adversity. And that, my friends, is something to be admired.

So, what should you do? Should you buy, sell, or hold? Let's take a look at the data.

As you can see, CarMax's stock has been on a rollercoaster ride over the past three years. But despite the volatility, the stock has managed to hold its ground and even show some growth. And with the used car market heating up, there's reason to believe that CarMax could be poised for a comeback.

But here's the thing: the trade war is far from over, and there's no telling how it will play out. So, if you're thinking about investing in CarMax, you need to be prepared for the possibility of more volatility ahead. And if you're already invested, it might be time to take a step back and reassess your position.

In the end, the decision is yours. But one thing is for sure: CarMax is a company to watch, and the trade war is a story that's far from over. So, stay tuned, and let's see how this all plays out!