CARG - Why CarGurus Stock Jumped on Wednesday
2023-05-10 15:30:00 ET
CarGurus (NASDAQ: CARG) investors trounced the market on Wednesday. The online auto-selling platform's shares were up 17% by 3 p.m. ET, compared to a flat performance for the S&P 500 index. The boost added to a good 2023 for owners of the stock, which is up 37% so far this year. Yet shares remain in negative territory over the past full year, down 36%.
The Wednesday rally was driven by an earnings report that showed improving profitability trends despite weak demand.
CarGurus revealed before the market opened that sales in the first-quarter period fell 46% to $232 million. Pressures on the business included soaring growth a year ago and rising interest rate pressures on car sales. Still, CarGurus' Q1 revenue met management's forecast from late February .
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Why CarGurus Stock Jumped on Wednesday