Reddit Investors Have No Faith in Used Car Stocks | CVNA CARS CARG

"Shares of Carvana ( NYSE:CVNA) trade near $460 today, and amazing rally from just $309 a share on November 21st. Despite the run, retail investors across Reddit and X aren't convinced. It's not just Carvana either, retail investors seem uniformly very bearish of the space. CarGurus ( NASDAQ:CARG) and Cars.com ( NYSE:CARS) face identical bearish sentiment scores of 8 to 12 out of 100. Those are among the lowest scores we currently track on 24/7 Wall St and are specific to this subsector."

"The most viral post came from user lord_denister, who accused Carvana insiders of using the company's December S&P 500 inclusion as an exit strategy. " While we were getting margin called, the people actually running this company have been not so quietly sprinting for the exits," the post read, drawing 3,074 upvotes and 399 comments. The author detailed over $500M in insider sales across six months, with CEO Ernest Garcia III allegedly selling shares daily and executives dumping tens of millions in early December alone."

"The negativity extends beyond Carvana's insider selling controversy. Reddit discussions frame the entire auto marketplace sector as facing existential threats. Three concerns dominate the conversation: Carvana missed Q3 earnings estimates by 22%, breaking a seven-quarter beat streak Traditional competitor CarMax shows declining fundamentals with earnings down 25% year-over-year Marketplace platforms like CarGurus and Cars.com face disruption from AI-powered search tools and changing consumer behavior"

Carvana shares rallied from about $309 to near $460, yet retail investors remain skeptical and bearish across social platforms. CarGurus and Cars.com register very low sentiment scores of 8 to 12 out of 100 in the subsector. A viral post alleges over $500 million in insider sales tied to Carvana's S&P 500 inclusion, with daily CEO sales and significant executive dispositions. Retail concerns include Carvana missing Q3 estimates by 22%, CarMax showing a 25% year-over-year earnings decline, and marketplace platforms facing disruption from AI search tools and shifting consumer behavior.

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