Carvana Stock Fell Even After Record Sales. The Margin Catch Is Why
Carvana Co. shares lost ground Thursday afternoon, giving up early gains. The online used-car retailer had reported its highest-ever first-quarter sales and profit, though margin pressure resurfaced in the results. This shift is key: Carvana no longer has to convince investors that demand is out there. Now, the spotlight turns to whether the company can expand and still keep decent margins per car. U.S. consumers, squeezed by new car sticker shock—Reuters pegs the average new vehicle near $50,000—keep fueling the secondhand market.