The equities market turned tumultuous today for online auto retailers as investors pulled back on e-commerce and tech following another benchmark interest rate hike from the Federal Reserve.
Shares of Carvana stock were down 17.88% from market open as of market close today at $48.92, landing Carvana with a market capitalization of $9.23 billion. Shares have been trading down 24.08% in the past five days following a funding snafu with its purchase of Adesa’s U.S.-based auctions, 56.99% in the past month and 81.43% in the past year.
Morgan Stanley downgraded the auto retailer Wednesday. “By the company’s own admission, it had accelerated growth at precisely the wrong time into a consumer slowdown leaving a major mismatch between capacity and demand, creating a liquidity crunch,” analyst Adam Jonas said in a research note.
Other automotive retailers in tech were poised for similar pullbacks as investors prioritize businesses with proven profits, Wedbush Securities analyst Seth Basham told Auto Finance News earlier in the week. Today, CarMax, Vroom, Shift Technologies, Cars.com and CarLotz also experienced declines in stock value, reaching near 52-week lows.
- CarMax shares were trading at $92.38 as of market close today, down 7.79% from market open. For the past five days, shares were trading up 4.05% but down 5.5% for the past 30 days and 29.1% in the past 52 weeks. CarMax has a market capitalization of $14.83 billion.
- Vroom, which has a market capitalization of $198.1 million, saw shares fall 10.06% from market open to $1.43 as of market close today. Share prices fell 9.18% in the past five days, 40.7% in the past 30 days and 96.66% in the last year.
- Shift’s shares sat at $1.23 as of market close today, down 7.52% from market open, 12.14% in the past five days, 41.98% in the past month and 85.46% in the past year. Shift has a market capitalization of $101.84 million.
- Shares of Cars.com declined 7.27% from market open as of close today to $10.84, down 4.41% in the past five days, 18.19% in the last 30 days and 16.55% in the last year. The company has a market capitalization of $756.15 million.
- Shares of the $97.82 million CarLotz landed at $0.86 as of market close today, down 8.6% from market open, 6.85% in the previous five days, 30.33% in last 30 days and 87.42% in the past 52 weeks.
As a comparison, at market close today from market open, shares of Nasdaq slumped down 3.25% to $154.90; shares of Dow Jones Industrial Average were trading down 3.12% to $32,997.97; and the S&P 500 index landed $4,146.87, down 3.56%.
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