Why Are Carvana Shares Sliding On Friday?

by | Mar 6, 2026 | General

Carvana Co. (NYSE:CVNA) fell Thursday as rising short interest and its recent earnings report pressured the online used-car retailer.

Broader markets also weakened as Middle East tensions pushed Brent crude toward $90 on fears disruptions in the Strait of Hormuz could hit Persian Gulf supply. The S&P 500 dropped 1.16%, while the Nasdaq Composite fell 1.07%.

Short Interest Climbs, Adding Stock-Specific Pressure

Short sellers are increasingly skeptical of Carvana. Short interest rose from 14.84 million to 15.17 million shares in the latest reporting period, according to Benzinga.

That puts 12.1% of publicly available shares short. At an average daily volume of 3.82 million shares, shorts would need nearly four days to exit without spiking the stock.

Q4 Earnings Beat Expectations But Cost Concerns Linger

Carvana reported fourth-quarter revenue of $5.60 billion, beating analyst estimates of $5.26 billion. Earnings came in at $4.22 per share. Vehicle sales jumped 43% year-over-year, with 163,522 units sold. Total revenue surged 58% annually.

A Reuters report on Feb. 19 flagged higher-than-expected costs from vehicle inspections, repairs, and detailing. Rising retail depreciation also squeezed per-unit economics, weighing on investor sentiment after earnings.

Technical Analysis

Carvana’s stock is currently trading 9.9% below its 20-day simple moving average (SMA) and 17.9% below its 100-day SMA, indicating short-term bearishness amid a longer-term downtrend.

Over the past 12 months, however, shares have seen a significant rise of 68.34%, reflecting some resilience. The stock’s current price of $316.89 positions it significantly above its 52-week low of $148.25 but well below the high of $486.89.

The Relative Strength Index (RSI) stands at 39.53, suggesting neutral momentum.

Earnings

Carvana is slated to provide its next financial update on May 6.

  • EPS Estimate: $1.55 (Up from $1.51 YoY)
  • Revenue Estimate: $6.01 Billion (Up from $4.23 Billion YoY)
  • Valuation: P/E of 39.2x (Indicates premium valuation)

The stock carries a Buy Rating with an average price target of $438.68.

Recent analyst moves include:

  • Citigroup: Buy (Lowers Target to $465.00) (Feb. 20)
  • Barclays: Overweight (Lowers Target to $450.00) (Feb. 20)
  • DA Davidson: Neutral (Lowers Target to $320.00) (Feb. 19)

CVNA Price Action: Carvana shares were down 5% at $314.60 at the time of publication on Friday, according to Benzinga Pro data.

Photo: Charles-McClintock Wilson / Shutterstock