Investors threw Carvana (NYSE: CVNA) stock into reverse on Friday, trading the auto retailer's shares down by almost 2%. On a day when the S&P 500 index motored slightly higher, there was a solid underlying reason for Carvana's decline -- namely, the latest quarterly results published by a rival.
Said rival is fellow retailer CarMax , which on Thursday before market open unveiled its third-quarter results . Unfortunately for the company, its investors, and the broader auto retail space, these disappointed the market. CarMax recorded notable year-over-year declines in unit sales, revenue, and earnings.
That hardly bodes well for other companies that earn money by slinging the metal. CarMax attributed its slides to macroeconomic headwinds that have put the cost of vehicles out of reach of many consumers.
For further details see:
Why Carvana Stock Was Stuck at a red Light Today