Carvana's Shares Plunge 5.74% as $1.87 Billion Volume Ranks 43rd Amid Mixed Earnings Expansion and Analyst Outlooks

On August 1, 2025, Carvana (CVNA) closed with a 5.74% decline, trading at $370.15 per share, as daily trading volume fell 56.63% to $1.87 billion, ranking 43rd in market activity. The stock's recent volatility reflects mixed signals from earnings, operational expansions, and analyst commentary.

Carvana reported Q2 2025 net income of $308 million on $4.8 billion in revenue, with retail unit sales hitting a record 143,280. Management attributed part of the profit boost to a one-time $100 per unit benefit from auto tariffs announced in March. Bank of America analyst Michael McGovern maintained a "Buy" rating, setting a $425 price target, citing a shift toward cost-conscious used vehicle demand. However, the stock's 65x forward P/E ratio highlights valuation concerns amid economic uncertainty.

Operational expansion at ADESA Seattle aims to enhance reconditioning capacity, supporting faster delivery times and higher sales volumes. The facility integration, paired with new hiring, underscores Carvana's focus on scaling efficiency. Analysts note risks in sustaining margins as the company expands, particularly with integration costs potentially impacting short-term profitability.

Community-derived fair value estimates for CVNA range widely from $62.76 to $361.57, reflecting divergent views on execution risks and growth potential. Simply Wall St projects $27.2 billion in revenue by 2028, requiring 22.4% annual growth, but questions remain about Carvana's ability to maintain margin stability during rapid scaling.

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