Carvana Co. (CVNA) shares plummeted 8.11% in intraday trading on Wednesday, despite the online used-car platform reporting better-than-expected fourth-quarter earnings. The stock nosedived as the company disclosed plans for a $1 billion stock shelf offering and an "at-the-market offering" program.

While Carvana's Q4 revenue of $3.55 billion and adjusted EBITDA of $359 million surpassed analyst estimates, investors seemed concerned about the potential dilution from the proposed share issuances. The company reported record annual net income of $404 million for 2024, but the stock fell sharply after the earnings release.

Despite the strong earnings beat, Carvana's decision to file for a $1 billion stock offering and amend its "at-the-market offering" program raised fears of equity dilution and weighed heavily on the stock's performance in the intraday session. Investors appeared to prioritize the potential share dilution over the company's impressive financial results.