Why Carvana Co. (CVNA) Crashed on Thursday

We recently compiled a list of the 10 Stocks Mirror Wall Street Downturn. In this article, we are going to take a look at where Carvana Co. (NYSE:CVNA) stands against the other stocks.

Shares on Wall Street traded lower on Thursday, as investors moved to unload positions to mitigate risks from uncertainties brought about by key economic factors such as President Donald Trump’s continued tariff threats and policy shifts.

The Dow Jones dived by 1.01 percent, the S&P 500 declined 0.43 percent, while the tech-heavy Nasdaq lost 0.47 percent.

Ten companies also mirrored a broader market downturn, finishing the trading session in the red territory amid a flurry of catalysts dampening investor sentiment.

To come up with Thursday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A customer buying a used car with the help of a finance specialist.

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.

Carvana Co. (NYSE: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, Carvana Co. (NYSE: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.

Overall CVNA ranks 1st on our list of Thursday’s top losers. 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. This article is originally published at Insider Monkey.