Carvana (NYSE:CVNA) hurt investors’ sentiment with poor third-quarter results. Net loss of $2.67 per share came much above Wall Street’s expectation of a loss of $1.90. Also, it compared unfavorably with a loss of $0.38 in the same quarter last year.
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Moreover, the company registered an 8% year-over-year decline in retail units sold to 102,570, owing to the challenging macro scenario. Revenue fell 3% to $3.39 billion.
Shares of the used cars online retailer plunged 7% in early trading hours on Friday. The company also provided subdued guidance for the fourth quarter. It expects retail units sold to decline on a sequential basis marred by lower used vehicle demand, as rising interest rates make buying cars expensive.
Is Carvana a Buy or Sell Stock?
CVNA stock has a Moderate Buy consensus rating based on eight Buys and 10 Holds. The average Carvana stock price target of $47.53 implies 231.22% upside potential.
