Reddit Investors Have No Faith in Used Car Stocks | CVNA CARS CARG

Shares of Carvana (NYSE:CVNA) commercialized adjacent $460 today, and astonishing rally from conscionable $309 a stock connected November 21st. Despite the run, retail investors crossed Reddit and X aren't convinced. It's not conscionable Carvana either, retail investors look uniformly precise bearish of the space. CarGurus (NASDAQ:CARG) and Cars.com (NYSE:CARS) look identical bearish sentiment scores of 8 to 12 retired of 100. Those are among the lowest scores we presently way connected 24/7 Wall St and are circumstantial to this subsector.

On Reddit's r/wallstreetbets, with traders coating the full assemblage arsenic fundamentally broken.

The astir viral station came from idiosyncratic lord_denister, who accused Carvana insiders of utilizing the company's December S&P 500 inclusion arsenic an exit strategy. "While we were getting borderline called, the radical really moving this institution person been not truthful softly sprinting for the exits," the station read, drafting 3,074 upvotes and 399 comments. The writer elaborate implicit $500M successful insider income crossed six months, with CEO Ernest Garcia III allegedly selling shares regular and executives dumping tens of millions successful aboriginal December alone.

CVNA insiders dumping $500M+ close arsenic scale funds are FORCED to bargain for S&P inclusion
by u/lord_denister successful wallstreetbets

The negativity extends beyond Carvana's insider selling controversy. Reddit discussions framework the full car marketplace assemblage arsenic facing existential threats. Three concerns predominate the conversation:

• Carvana missed Q3 net estimates by 22%, breaking a seven-quarter bushed streak

• Traditional rival CarMax shows declining fundamentals with net down 25% year-over-year

• Marketplace platforms similar CarGurus and Cars.com look disruption from AI-powered hunt tools and changing user behavior

The uniformity is striking. All 3 stocks person identical "very bearish" classifications contempt antithetic concern models. Carvana sells cars directly, portion CarGurus and Cars.com run arsenic marketplace platforms connecting dealers with buyers.

CarMax provides discourse for the broader malaise. The established utilized car retailer trades with a nett borderline of conscionable 1.84% and quarterly gross down 5.3% year-over-year. Analysts delegate mostly clasp oregon merchantability ratings with a people terms of $40, adjacent existent levels. CarGurus reported stronger results with Q3 gross up 14% and operating income surging 134%, yet shares commercialized astir $38, down from highs earlier this year. For investors watching this space, the Reddit sentiment reflects genuine assemblage headwinds alternatively than isolated institution issues.