Carvana Stock Fell Even After Record Sales. The Margin Catch Is Why

Shares of Carvana jumped in after-hours trading Wednesday, after the online used-car dealer posted record quarterly revenue and stronger profit. Vehicle sales climbed 40% from the prior year, beating Wall Street forecasts.

Shares of Carvana Co slipped 2.4% to $383.69 in after-hours trading Thursday, following an intraday range from $360.57 up to $391.65.

Carvana Co. shares nudged up in after-hours Monday, adding to a turbulent run for the used-car retailer’s stock.

Carvana Co shares dropped 4.4% to $408.46 by midday Friday, extending the online used-car seller’s rocky run this week. Earlier, the stock bounced between $401.77 and $427.77 during the session.

Carvana Co. shares dropped 14.1% to $410.04 in after-hours trading Wednesday following a report from short seller Gotham City Research that raised fresh doubts about the used-car retailer’s profitability. The stock was volatile throughout the day, climbing as high as $482.31 before retreating to $375.07, with roughly 19.8 million shares traded.

Shares of Carvana Co plunged roughly 19.5% to $384.57 Wednesday afternoon after short seller Gotham City Research released a report accusing the company of accounting irregularities and undisclosed related-party deals. The stock had closed Tuesday at $477.72 and fluctuated between $375.13 and $482.31 during the session. Carvana did not immediately respond to requests for comment.

Carvana Co shares edged down 0.7% to $474.89 on Friday, after hitting an intraday peak of $486.50. So far, the stock has fluctuated between $462.45 and $486.50 during the session.

Carvana Co shares jumped roughly 5% to $478.45 Thursday, beating gains in the broader U.S. market and several auto-retail rivals.

Shares of Carvana Co jumped 4.4% to $475.06 in afternoon trading Thursday, after fluctuating between $456.08 and $476.95 earlier. Roughly 1.7 million shares traded hands.

Carvana Co shares ended Wednesday’s session 2.9% higher, closing at $455.02 on volume of roughly 3.49 million. The online used-car seller remained within a narrow range toward the close. In after-hours trading, the stock ticked up 0.4% to $456.98.