Carvana Stock Is Trading Lower Thursday: What's Driving The Action?

Carvana Co CVNA shares are trading lower Thursday on the heels of the company’s fourth-quarter financial results. Here’s what you need to know.

• Q4 Revenue: $3.55 billion, versus estimates of $3.31 billion

• Q4 EPS: 56 cents, versus estimates of 21 cents

Carvana sold 114,379 vehicles in the fourth quarter, up 50% year-over-year. Total revenue was up 46% year-over-year, net income totaled $159 million and net income margin came in at 4.5% in the fourth quarter.

"In 2024, Carvana became the most profitable public automotive retailer in U.S. history as measured by Adjusted EBITDA margin while also resuming industry-leading growth," said Ernie Garcia, co-founder and CEO of Carvana.

"This unique combination is the product of more than $10 billion, 10 years, and tens of millions of hours of hard work invested to develop a truly differentiated business model that delivers both better customer experiences and better results. With just ~1% market share today and many opportunities to improve and expand our offering from here, we know this is just the beginning of our journey to change the way people buy and sell cars."

Garcia highlighted the company’s AI capabilities on a conference call following the print. He noted that management plans to be “very aggressive” in its push to implement AI across the company’s business.

Related Link: Carvana’s Online Chatbot Sebastian ‘Represents The Brain We’re Building,’ Says CEO As Used Car Retailer Posts 50% Sales Growth In Q4

Carvana said it expects a sequential increase in retail units sold and adjusted EBITDA in the first quarter. The company also said it expects "significant growth" in both retail units sold and adjusted EBITDA in full-year 2025.

Following the company’s quarterly results, Needham analyst Chris Pierce maintained Carvana with a Buy and raised the price target from $330 to $340. Baird analyst Colin Sebastian maintained a Neutral rating and raised the price target from $200 to $250.

CVNA Price Action: Carvana shares were down 6.06% at $264.75 at the time of publication Thursday, according to Benzinga Pro.

Photo: courtesy of Carvana.