Carvana Stock's Monthly Plunge Turns Heads But Does Not Dent Retail Confidence

On Stocktwits, one bullish watcher said the stock has already hit the bottom and should rise to $350 by the end of the year.

Shares of Carvana recovered about 0.4% in after-hours trading on Tuesday after falling more than 10% earlier in the day, but retail traders are looking at buying the dip.

Last week, BofA lowered the price target on Carvana to $220 from $270 with a Buy rating, Fly reported. With year-over-year unit growth of 50% in Q4 and data pointing to another unit beat in Q1, Carvana is still gaining significant share, said the report citing the analyst.

According to the firm, President Donald Trump's "period of transition" and ongoing uncertainty have resulted in the stock being one of the biggest underperformers in recent weeks, according to the report.

Carvana shares have dropped 40% in the last 30 days, setting them on track for their worst monthly performance since October 2024.

On Stocktwits, one bullish watcher said the stock has already hit the bottom and should rise to $350 by the end of the year.

Another bullish trader suggested the stock should appreciate when tariffs are executed if it makes cars expensive.

In the meantime, a bearish watcher said that with massive put volumes, the stock was setting up for a second round of bear flag breakdown.

Overall, sentiment on Stocktwits improved from 'bullish' to 'bearish' in a week. Message volume has dipped into 'extremely low' levels.

For its fourth-quarter earnings, the used car retailer's earnings per share stood at $0.64, beating estimates of $0.30. Revenues were $3.55 billion, up 46% year over year, beating Wall Street expectations of $3.34 billion. Its 2024 revenue stood at $13.67 billion, up 27% from a year earlier.

During its earnings call, Carvana said it expects a "strong 2025" with "significant growth in both retail units sold and Adjusted EBITDA," including a sequential increase in retail units sold and Adjusted EBITDA in Q1 2025.

Carvana stock is down 18% year-to-date.

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