Shares of online used car retailer Carvana Co. (CVNA) plummeted by 5.02% in intraday trading on Friday morning, following a 12.10% drop on Thursday. The stock's decline was a reaction to the company's lack of specific guidance for 2025 and concerns over potential headwinds from tariffs and inflation.
Carvana reported strong fourth-quarter 2024 and full-year 2024 results, beating analyst expectations on key metrics such as revenue and adjusted EBITDA. However, the company's vague guidance for 2025 rattled Wall Street analysts and investors, who were expecting more detailed projections.
In addition, Carvana's CEO Ernie Garcia provided a cautious outlook for the company, citing potential headwinds from factors like tariffs and inflation. The Trump administration's threat to impose 25% tariffs on imported cars has raised concerns about higher car prices and potential impact on sales, adding further pressure on Carvana's stock.
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