10 Stocks Mirror Wall Street Downturn

1. Carvana Co. (NYSE:CVNA)

Carvana Co. (NYSE:CVNA) dropped its share prices for a third straight day, ending Thursday’s trading lower by 12.10 percent to close at $247.72 apiece as investors unloaded positions following mixed earnings results and a cautious outlook for the company amid tariff threats.

CVNA, an online marketplace for used cars, said net income attributable to the company settled at $79 million in the fourth quarter of 2024, a reversal from the $114 million net loss registered in the same period in 2023.

However, net income attributable to the company fell by 53 percent to $210 million last year from $450 million in 2023.

In a recent interview with Bloomberg, CVNA CEO Ernie Garcia posted a conservative outlook for the company, saying that they are taking into consideration all headwinds, including tariffs and inflation rate, as they remain focused on long-term growth.

Earlier this week, President Donald Trump threatened to slap imported cars with around 25 percent tariffs, a policy that could make cars more expensive and impact sales.

While we acknowledge the potential of CVNA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CVNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.