Why Cars.com (CARS) Shares Are Getting Obliterated Today

StockStory
28 Feb
Why Cars.com (CARS) Shares Are Getting Obliterated Today

What Happened?

Shares of online new and used car marketplace Cars.com (NYSE:CARS) fell 20.3% in the afternoon session after the company reported weak fourth-quarter results, with full-year revenue guidance slightly missing expectations and next quarter's revenue guidance falling short of Wall Street's estimates. Revenue for the quarter was essentially flat year-on-year, reflecting a decline in dealer subscription sales. Despite the revenue slowdown, Cars.com narrowly exceeded analysts' EBITDA expectations, indicating a better handle on profits. Overall, this was a weaker quarter, with revenue growth stagnating even as cost controls helped sustain profits​.

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What The Market Is Telling Us

Cars.com’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. Moves this big are rare for Cars.com and indicate this news significantly impacted the market’s perception of the business.

Cars.com is down 27.7% since the beginning of the year, and at $12.18 per share, it is trading 41.2% below its 52-week high of $20.71 from June 2024. Investors who bought $1,000 worth of Cars.com’s shares 5 years ago would now be looking at an investment worth $1,482.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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