Carvana Co ( (CVNA) ) has fallen by -7.68%. Read on to learn why.
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Carvana Co shares slipped 7.68% over the past week, a breather after a spectacular multi‑year rebound that has seen the online used‑car retailer added to the S&P 500. The pullback comes despite strong recent fundamentals: quarterly revenue jumped to $5.65 billion from $3.66 billion a year earlier, net profit nearly doubled, and the company continues to benefit from cost controls, expanding reconditioning capacity, and improved efficiency after its near‑collapse in 2022. Still, the stock’s huge rally and recent inclusion in a major index have left some investors locking in profits and seeking downside protection in options markets, where demand for puts has increased.
Technically, Carvana Co still looks strong, which makes the recent 7.68% decline more about sentiment than a clear shift in the trend. The shares trade above their 50‑day exponential moving average and key momentum indicators such as MACD, Williams %R, and Rate of Change all flash bullish signals. Implied volatility has eased to the low end of its one‑year range, suggesting traders are no longer pricing in extreme daily swings even as put‑call skew steepens, indicating investors are willing to pay up for insurance against further short‑term downside.
On Wall Street, analysts remain broadly constructive on Carvana Co despite the weekly drop. The stock carries a Strong Buy consensus based on a large majority of Buy ratings, with price targets that still imply modest upside from current levels. Bulls highlight Carvana’s rapid sales growth, rising earnings per share, and growing share of the used‑car market, while skeptics point to negative insider sentiment, with company executives selling shares after the rally. For investors, the recent 7.68% pullback may reflect healthy consolidation in a high‑beta stock rather than a fundamental reversal, but it also underscores how quickly sentiment can swing in a name that has already delivered a 10,000% rebound from its lows.