Carvana Co (NYSE:CVNA) shares traded lower on Wednesday as the online used-car retailer continues to navigate recent volatility surrounding its business operations and allegations from short sellers.
Same-Day Delivery Rollout Continues
Carvana on Feb. 3 announced an expansion of its delivery services to Oregon’s Eugene metro area, offering same-day vehicle delivery to eligible customers.
Hearns noted the company’s logistics network enables delivery within hours after checkout.
Carvana initially launched same-day delivery in Arizona and now operates the service across select markets in more than 20 states.
Short Seller Allegations Persist
The service expansion comes as Carvana faces scrutiny from Gotham City Research, which accused the company of inflating earnings across multiple reporting periods. The firm alleged Carvana overstated profits in 2023 and 2024 by more than $1 billion, according to reports from late January.
Carvana dismissed the allegations in an emailed statement, calling the report “inaccurate and intentionally misleading.”
Technical Analysis
Carvana stock is currently trading 7.9% below its 20-day simple moving average (SMA) and 2.5% above its 100-day SMA, indicating a mixed short-term technical picture while showing some strength in the longer term. Shares have increased 44.46% over the past 12 months and are currently positioned closer to their 52-week highs than lows, suggesting a generally positive trend.
The RSI is at 41.74, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $401.00
- Key Support: $391.00
Earnings & Analyst Outlook
Investors are looking ahead to the next earnings report on Feb. 18, 2026.
- EPS Estimate: $1.11 (Up from 56 cents YoY)
- Revenue Estimate: $5.23 billion (Up from $3.55 billion YoY)
- Valuation: P/E of 89.0x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price forecast of $451.83. Recent analyst moves include:
- JP Morgan: Overweight (Raises Target to $510.00) (Jan. 28)
- Wells Fargo: Overweight (Raises Target to $525.00) (Jan. 27)
- Barclays: Overweight (Raises Target to $530.00) (Jan. 21)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Carvana, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 11.49) — Trading at a steep premium relative to peers.
- Growth: Bullish (Score: 98.3) — Strong growth potential indicated by high growth metrics.
- Momentum: Bullish (Score: 80.31) — Stock is outperforming the broader market.
CVNA Price Action: Carvana shares were down 5.65% at $369.56 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by Charles-McClintock Wilson via Shutterstock
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