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Carvana shares drop 7% despite record Q2, highlighting investor doubts over its online model.

Market News
18 Aug 2026
24/7 Wall Street
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Bearish
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Carvana's shares fell 7% to $65.50 despite reporting a record Q2 with $7.4 billion revenue and $513 million net income. The stock is down 17% year-to-date, contrasting with CarMax's 51% gain, raising questions about Carvana's online-first business model. CEO Ernie Garcia III cited inventory growth as a near-term margin challenge but remains confident in the company's growth strategy. Investors are watching inventory trends, profit per unit, and potential regulatory scrutiny, while CarMax's strong performance pressures Carvana's unique market position.

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