CARG - CarGurus stock crashes on weak guidance erosion in user engagement

CarGurus (NASDAQ:CARG) shares skidded in Monday’s extended session after posting disappointing EPS guidance and noting lackluster user engagement. The Massachusetts-based automotive research and retail company beat on top and bottom lines for its first quarter earnings release. Additionally, management indicated that second quarter revenue should be well above analyst estimates. However, the company missed on all-important profitability forecasts for the second quarter. In the current market environment that appears to have a laser-focus on profits, that miss is motivating a sharp move to the downside.  Shares fell by more than 12% shortly after the results were reported. The drop added to an over 25% decline marked over the past month. Adding some apprehension in the results were declines in user engagement on the websites. Per the report, U.S. average monthly unique users fell 15% from 2021 while international monthly unique users declined 13%. Dig into the quarterly results.

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CarGurus stock crashes on weak guidance, erosion in user engagement