Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona.

Carvana Co.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Рынок не поддерживает быков.

Strong index, significantly down. The market does not support the bulls.

Средний индекс, значительно упал. Отток средств из лонгов резко увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased sharply and is at a high level.

Key Points
The disposition involved 8,023 shares with a total transaction value of ~$576,000 based on a weighted average price of $71.79.
The activity represented 6% of the direct equity holdings held by the insider before the filing.
The transaction was executed directly by the insider and included 5,000 shares sold under a Rule 10b5-1 trading plan and 3,023 shares withheld for tax obligations.
The sale reflects routine portfolio management following a vesting event, with the insider maintaining a multi-million dollar equity position.
Stephen R. Palmer, Vice President of Accounting at Carvana (NYSE:CVNA), disposed of 8,023 shares of Class A Common Stock on Sept. 1, 2026, according to a recent SEC Form 4 filing.
Transaction summary
Transaction value
~$576,000
Shares sold
8,023
Post-transaction shares (directly held)
128,886
Post-transaction value
$9.3 million
Transaction value based on SEC Form 4 weighted average sale price ($71.79); post-transaction value based on September 01, 2026, market close ($72.18).
Key questions
What were the specific components of this share disposition?
The filing detailed two distinct activities: 5,000 shares were sold on the open market, and the company withheld 3,023 shares to cover tax liabilities associated with the vesting of restricted stock units.
What is the status of the insider's remaining equity position?
Stephen R. Palmer continues to hold 128,886 shares of Class A Common Stock directly, valued at $9.3 million as of the Sept. 1, 2026, valuation.
How does the Rule 10b5-1 plan impact the interpretation of this sale?
The open-market portion of the trade was completed under a Rule 10b5-1 plan adopted on May 28, 2025, which removes the insider's discretion over the timing and execution of the transaction to avoid potential conflicts.
What is the context regarding the stock's recent performance?
At the time of the transaction on Sept. 1, 2026, Carvana shares had a one-year total return of -3%. The stock was priced at $74.16 as of the Sept. 2, 2026, market close.
Company Overview
Share Price (as of market close 2026-09-02)
$74.16
Market Capitalization
$53.3 billion
Revenue (TTM)
$25.1 billion
Net Income (TTM)
$2.1 billion
Company Snapshot
Carvana operates a digital platform that facilitates the purchase and sale of pre-owned vehicles across the United States, generating revenue through vehicle sales, financing solutions, and complementary products and services.
The company employs a vertically integrated business model encompassing vehicle sourcing and reconditioning, online transaction facilitation, consumer financing, and proprietary logistics capabilities for vehicle delivery and pickup.
Carvana primarily serves retail consumers seeking to purchase pre-owned vehicles through a digital-first channel, targeting customers who prefer online convenience and transparent pricing in the automotive retail sector.
Carvana is a significant player in the automotive retail sector, with a market capitalization of $81.7 billion and TTM revenue of $25.1 billion, demonstrating substantial scale in the digital vehicle marketplace.
The company's competitive differentiation derives from its end-to-end digital platform architecture, proprietary logistics network, and integrated financing capabilities, which collectively enable a streamlined customer experience in pre-owned vehicle transactions.
With 23,100 employees and operations across the United States, Carvana has established itself as a transformative force in automotive retail through technology-enabled distribution and customer-centric service delivery.
What this transaction means for investors
This sale shouldn't concern investors. It was completed under a pre-adopted plan for personal financial management reasons. Moreover, the insider still retains a substantial amount of shares in the company's stock. The sale represented a small percentage of the insider's holdings.
Importantly, Carvana continues to expand rapidly. TTM revenue grew over 52% year over year, while operating margin continues to hold around 9%.
If Carvana can continue expanding margins into the double-digit range over time, the stock could offer upside even at these elevated share prices. It trades at a reasonable enterprise value-to-sales ratio of about 1.8x.
Should you buy stock in Carvana right now?
Before you buy stock in Carvana, consider this:
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Carvana VP Stephen Palmer Sells 8,023 Shares

It has been about a month since the last earnings report for Etsy (ETSY). Shares have lost about 0.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Etsy due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Etsy, Inc. before we dive into how investors and analysts have reacted as of late.
ETSY Q2 Earnings Beat on GMS and Ads Strength, Revenues Rise Y/Y
Etsy’s second-quarter 2026 earnings of $1.34 per share beat the Zacks Consensus Estimate by 14.53%. The company reported 98 cents per share from continuing operations. Strength in gross merchandise sales, advertising and operating leverage supported the earnings outperformance.
Revenues increased 6.2% year over year to $668 million, surpassing the consensus estimate by 2.87%. On an Etsy marketplace standalone basis, revenues increased 9.3% year over year.
ETSY's Revenue Mix Benefits From Advertising
Marketplace revenues were $456.1 million, accounting for 68.2% of total revenues, up 4.8% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, marketplace revenues increased 8.4% year over year.
Second-quarter Etsy marketplace GMS rose 7.5% year over year to $2.6 billion. On a continuing operations basis, GMS increased 1% year over year, marking the third consecutive quarter of growth for the Etsy marketplace.
Services revenues were $212.2 million, accounting for 31.8% of total revenues, up 9.3% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, services revenues rose 11.2% year over year.
Etsy Ads was the primary driver of take-rate expansion, aided by machine learning improvements that enhanced ad relevance and seller budget pacing. Offsite Ads also contributed as paid marketing shifted toward higher-monetizing channels.
Etsy Marketplace Metrics Gain Momentum
Trailing 12-month active buyers totaled 87 million, down 0.4% year over year but up 0.4% sequentially. Etsy added roughly 350,000 active buyers from the first quarter. Gross buyer additions increased 7.1% year over year to 12.1 million.
New buyers rose 4.4% to 5 million, while reactivated buyers grew 9% to 7.1 million. Repeat and habitual buyer cohorts recorded their first sequential gains since 2023, although both remained below year-ago levels.
Etsy Expands Margins With Cost Discipline
Second-quarter adjusted EBITDA rose 14.7% year over year on a continuing operations basis to $195.4 million. The adjusted EBITDA margin expanded 210 basis points to 29.2%, as nearly half of incremental revenues flowed through to adjusted EBITDA.
Second-quarter operating expenses declined 2.1% to $358.8 million. Marketing expenses were $190.9 million, while product development costs totaled $100.9 million. General and administrative expenses fell to $66.9 million, benefiting from headcount discipline, lower professional services spending and a reversal of non-income tax expense.
ETSY's Q2 Balance Sheet & Cash Flow Details
As of June 30, 2026, cash and cash equivalents totaled $901.3 million, down sequentially from $1.21 billion as of March 31, 2026.
Total liquidity, including short- and long-term investments, was approximately $1.28 billion, a sequential decline from approximately $1.58 billion as of March 31, 2026.
The company repurchased 3.9 million shares for $250 million during the quarter. Etsy also authorized a new $2 billion repurchase program. The completed Depop sale is expected to bring approximately $1.4 billion in cash during the third quarter, supporting accelerated buyback activity.
Net cash provided by continuing operations totaled $165.9 million in the reported quarter. Free cash flow from continuing operations was $158.1 million in the second quarter of 2026; this represented approximately 81% of adjusted EBITDA.
Etsy Raises 2026 Outlook
For the third quarter of 2026, management expects GMS between $2.53 billion and $2.58 billion, representing year-over-year growth of 4% to 6%. The take rate is projected at approximately 26%, with an adjusted EBITDA margin of 28% to 30%.
For 2026, Etsy now anticipates mid-single-digit GMS growth, up from its previous low-single-digit growth outlook. Management raised the adjusted EBITDA margin forecast to 29% to 30% from 28% to 30%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Etsy has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Etsy has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Etsy belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, Carvana (CVNA), has gained 7.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Carvana reported revenues of $7.38 billion in the last reported quarter, representing a year-over-year change of +52.4%. EPS of $0.42 for the same period compares with $0.26 a year ago.
Carvana is expected to post earnings of $0.49 per share for the current quarter, representing a year-over-year change of +133.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.9%.
Carvana has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Etsy (ETSY) Down 0.3% Since Last Earnings Report: Can It Rebound?

Key Points
Overall, U.S. consumers are demonstrating improving economic resiliency.
A subset of these consumers, however, are starting to show serious signs of financial struggle.
Investors can’t afford to ignore the proven and potential impact of this divergence.
Economic data continues to send mixed messages. That's the takeaway from the Federal Reserve's second-quarter snapshot of U.S. consumer loans anyway. The total number of loans that were delinquent by 90 or more days fell from 2.91% a year earlier to 2.57% in the second quarter of this year, down from Q1's figure of 2.83%.
There are pockets of problems, however. Mortgage delinquencies edged measurably higher -- again -- as did past-due auto loans. Indeed, car loan delinquencies are showing signs of serious trouble, moving back within sight of multiyear highs.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
There's an important nuance that's not readily evident in the Fed's main numbers, however. That is, subprime loans (loans granted to borrowers with lower credit scores) account for a significant share of the recent weakness. For instance, the Fed's data indicates that while the second quarter's subprime mortgage loan delinquency rate of 1.86% was a hair lower than Q1's 1.88%, the rate is still near a multiyear high. As the Mortgage Bankers Association's vice president of industry analysis, Marina Walsh, recently noted, while "mortgage delinquencies decreased [sequentially] slightly across all loan types in the second quarter of 2026 ... the broader trend is that both delinquencies and foreclosures have increased over the past year."
Separately but simultaneously, although bond rating firm Fitch reported that last quarter's subprime car loan delinquencies fell from 6.5% at the end of 2025 to 5.8% as of the end of Q2, its recent analysis also says, "July, however, showed renewed deterioration, particularly in subprime," attributing the delinquency divergence to "affordability pressures weighing disproportionately on lower-income, highly leveraged borrowers in a K-shaped economy." Moreover, Fitch "expects prime and subprime auto loan ABS [asset-backed securities] performance to weaken further in the second half of this year, driven by tariff uncertainty, oil-price volatility tied to the U.S.-Iran conflict, and a cooling labor market, with subprime remaining under greater pressure than prime."
And this is nothing for investors to ignore.
A tale of two kinds of consumer
Last quarter's delinquency data underscores the argument that -- just as Fitch's report suggests -- the U.S. is experiencing a K-shaped economic recovery. In other words, rather than a rising tide lifting all boats, affluent households are adjusting to rising inflation and higher interest rates well enough, while lower-earning households and consumers are increasingly struggling.
And we were already seeing hints of this dynamic. Take American Express' (NYSE: AXP) second-quarter results as an example. The credit card company largely serving a more affluent customer base saw year-over-year revenue growth of 9% -- the highest in three years -- more or less matched by profit growth. Chief Financial Officer Christophe Le Caillec specifically highlighted this during Q2'searnings conference call noting that card-based retail spending, restaurant spending, and travel-related spending all grew at an even faster clip. Yet loan delinquencies didn't budge, and remain below levels seen during the COVID-19 pandemic. That's in contrast to credit bureau TransUnion's observation that "a growing subprime population largely drove the increase" drove the second quarter's 90-day credit card delinquencies.
We're seeing similar red flags on other fronts, too. Fast-food restaurant chain McDonald's (NYSE: MCD) Q2 sales growth fell short of expectations largely because, in CEO Chris Kempczinski's words, "Although we've restored our overall value and affordability leadership, our restaurant level results show that execution was inconsistent across the system." That underscores the economic sensitivity of its core, value-conscious customer.
Brick-and-mortar discount retailer Walmart (NASDAQ: WMT) misfired last quarter as well. U.S. same-store sales growth of 2.6% fell short of the 3.8% year-over-year growth rate analysts were expecting.
Interestingly, used-car dealers Carvana (NYSE: CVNA) and CarMax (NYSE: KMX) aren't showing any serious signs of trouble yet, despite their dependence on consumers' ability to obtain credit. That trouble could be brewing, though. Data from industry research outfit Cox Automotive indicates that subprime loans' share of the nation's auto lending market fell every month in Q2, from March's 19.5% to June's 16.6%, with subprime lenders simply rejecting more of these increasingly risky loan applications.
An extension of this headwind could prove particularly problematic for Carvana, which counts sales of automobile loans to third-party investors as a key component of its per-car profit. Again, Fitch expects automobile-loan-based asset-backed securities to underperform for the remainder of this year, largely because their underlying subprime borrowers are facing a growing amount of economic hardship that's making it tougher to repay these loans. In this vein, know that online bank Ally Financial (NYSE: ALLY) also manages a sizable subprime car loan portfolio that could be vulnerable.
Expect more of the same
Only time will tell whether this dynamic will persist into the foreseeable future, and if so, to what degree.
Clearly, not much has changed with or for the economy since the second quarter of the year, though. Inflation is still uncomfortably high, the job market is less than solid, and paychecks are relatively weak, while corporate and consumer confidence is low. The reasons for the K-shaped economic recovery that were clearly in place in Q2 appear to still be in place now. Investors shouldn't be surprised to see at least a similar outcome and impact on companies' performances, if not the exact same ones.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!*
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American Express is an advertising partner of Motley Fool Money. James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, CarMax, and Walmart. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Loan Delinquencies Edge Lower in Q2, but Some Remain at Very High Levels. Here's What It Means for Investors.

(RTTNews) - Root, Inc. (ROOT), a car insurance provider, announced the extension of its exclusive embedded partnership with Carvana (CVNA).
In 2022, Root and Carvana launched 'Carvana Insurance Built with Root', an industry-first embedded insurance product that seamlessly integrates personalized coverage into the car-buying journey.
The agreement extends the partnership through at least August 2028, reinforcing a technology-driven collaboration that still reshapes the automotive and insurance customer experience.
According to the company, the partnership transformed car buying by making insurance simpler, faster, and more intuitive. In under four years, it surpassed 200,000 policies, combining Carvana's customer experience with Root's data science to deliver an industry-first, 3-click insurance purchase at checkout.
On the Nasdaq in the after-hours activity, the shares of Root traded 1.62 percent higher at $55.99, after closing Tuesday's regular trading 0.70 percent down.
In the overnight activity on the NYSE, Carvana shares were trading 0.46 percent lower at $71.85, extending the 1.74 percent drop at Tuesday's close.

Root Extends Embedded Partnership With Carvana Through At Least August 2028

Key Points
After trading as low as $739 on July 29, the Micron stock price shot back up to $979.64 on Aug. 14.
It's possible Micron could complete a stock split before the end of the year, as Carvana and Booking Holdings completed stock splits in under two months.
Some data suggests that 12 months after a split announcement, companies that have split their stocks outperform the S&P 500.
For those who have owned Micron Technology (NASDAQ: MU) stock since the start of the year, the last month alone has offered a wild ride. On July 29, shares sank to a closing price of $739. That's seemingly based on several factors converging, ranging from potential profit-taking to fears of cheaper artificial intelligence (AI) models emerging from China to increased competition to fears of memory makers losing margin power and returning to boom-or-bust cycles as supply catches up to demand created by AI.
Since July 29, however, the stock price has rebounded, closing at $971.66 on Aug. 14. That may have some investors wondering whether it will cross the $1,000 threshold and whether a Micron stock split is possible by the end of 2026.
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Splitting Micron stock
From a technical perspective, it would be possible for Micron to split its stock before the end of the year. For example, on Feb. 18, the travel and restaurant reservation company Booking Holdings announced a 25-for-1 stock split. Less than two months later, on April 6, it completed the split. Another example is Carvana, which announced a 5-for-1 stock split on March 13 and completed it on May 7. As with Booking, the split was finalized in less than two months.
There's no golden rule that a split will be conducted in less than two months, but these are just recent examples. As we're in mid-August, if Micron wants to split its stock, it's getting close to the wire, but a split could be completed before the end of 2026.
That said, even if it's feasible, that doesn't mean it's likely.
Avoiding the volatility of stock splits
There is paperwork and legal fees involved in a stock split, which offers a reason a company may want to avoid conducting one. But a bigger reason could be that the company is worried about the volatility a split announcement may create.
According to 40 years of research data from Bank of America, shared by Statista, companies that split their stocks saw an average total return of 25.4% in the 12 months following a split announcement, which was more than twice the S&P 500's return during the same period.
On the surface, that may sound positive. Still, that's just the average total return, and a split can attract traders and investors who know that bit of history and are interested in capitalizing on potential short-term opportunities. Then, when they reach the percentage gain they are looking for, they could sell, thereby pressuring the stock price lower. That's why not conducting a split could be viewed as a benefit for long-term shareholders, as it keeps the potential volatility from a stock split at bay.
Given how close we are to the end of 2026, as well as the recent price swings, it appears unlikely a Micron stock split would be completed by December. For long-term investors, what's more important than a stock split will be Micron offering updates on the multi-year contracts it's locking in. That will help offset concerns that it will still be stuck in a boom-or-bust cycle when the supply of memory and storage products finally catches up with demand.
Should you buy stock in Micron Technology right now?
Before you buy stock in Micron Technology, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Micron Technology wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Bank of America is an advertising partner of Motley Fool Money. Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booking Holdings and Micron Technology. The Motley Fool has a disclosure policy.

Micron Stock Inches Closer to $1,000 Per Share, but Time Is Running Out for a Stock Split in 2026

Key Points
Carvana is leveraging high-tech e-commerce and recent dealership acquisitions to capture more of the used and new car markets.
Home Depot remains a cash-flow powerhouse with a dominant position serving both do-it-yourselfers and professional contractors.
Which of these retail giants is the better fit for your portfolio in 2026?
As the consumer landscape evolves, investors must choose between high-growth disruptors and established dividend payers. We compare Carvana (NYSE:CVNA) and Home Depot (NYSE:HD) to see which stock offers the best path forward.
Carvana focuses on transforming the car-buying experience through an online-only model, while Home Depot provides essential materials for the housing market. Both companies rely on consumer spending but face very different hurdles. This comparison evaluates their financial health, growth trajectories, and current valuations to help you navigate these two unique opportunities.
The case for Carvana
Carvana is a prominent player among consumer discretionary stocks that focuses on transforming the car-buying experience. It operates an e-commerce platform that allows customers to buy, sell, and finance used vehicles entirely online with home delivery or local pickup. The company recently expanded its reach by acquiring seven franchised dealerships from Stellantis, marking a strategic move into the new-car market and franchised operations.
In FY 2025, the company generated revenue of nearly $20.3 billion, which represents growth of approximately 48.6% compared to the prior year. This rapid expansion supported a net income of close to $1.4 billion for the fiscal year, a significant improvement from previous years. The resulting net margin was roughly 6.9% for the period, which highlights how much profit remains after all operating costs and taxes are paid.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 1.6x. This figure represents total debt relative to shareholder equity, providing insight into the company's financial leverage and reliance on borrowed capital. The current ratio, which measures the ability to pay short-term obligations using current assets, stands at approximately 4.3x. Free cash flow reached nearly $889.0 million in FY 2025, representing the cash a company generates after accounting for capital expenditures.
The case for Home Depot
Home Depot is the world's largest home improvement retailer, serving both individual homeowners and professional contractors across the United States, Canada, and Mexico. The company has focused on expanding its specialized services for professionals through the strategic acquisitions of specialty distributors like HD Supply and SRS Distribution. It maintains a vast physical presence with over 2,350 retail stores and an extensive digital platform to support its diverse customer base.
In FY 2025, revenue reached nearly $164.7 billion, indicating a growth rate of approximately 3.2% over the previous fiscal year. The company reported a net income of close to $14.2 billion during this same period, showcasing its ability to generate substantial earnings at scale. This level of profitability reflects a net margin of roughly 8.6%, which is the percentage of total revenue that remains as profit after all expenses.
As of its February 2026 balance sheet, the debt-to-equity ratio was approximately 5.1x. This indicates that the company uses a significant amount of debt relative to its equity base, which has been influenced by shareholder returns and acquisitions. Free cash flow was nearly $12.6 billion for FY 2025, representing the actual cash available for dividends or debt repayment. The current ratio, measuring the company's short-term liquidity, was roughly 1.1x.
Risk profile comparison
Carvana faces significant risks from interest rate volatility and general inflation, which can reduce consumer demand for used vehicles. The company is currently navigating legal challenges, including SEC inquiries and class action litigation following reports from short-selling firms. Furthermore, its reliance on proprietary artificial intelligence models for vehicle pricing creates operational risks while competing against traditional retailers like AutoNation.
Home Depot deals with market volatility in the housing sector, as high interest rates often result in fewer large-scale renovation projects. The company is also facing legal action regarding its alleged use of AI-powered license plate readers and surveillance technology in its parking lots. Additionally, the integration of large acquisitions remains complex while the company faces stiff competition from Lowe's in the home improvement space.
Valuation comparison
While Home Depot offers a more traditional Forward P/E based on future earnings estimates, Carvana carries a higher P/S ratio as it prioritizes growth.
Metric
Carvana
Home Depot
Forward P/E
34.8x
23.4x
P/S ratio
3.2x
2.1x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with Carvana. That's not a knock on Home Depot, which is one of the most durable retail businesses ever built. It pays a reliable dividend, holds a dominant position in home improvement, and has a long history of rewarding patient investors. For income-focused investors, this is a solid stock to own.
But Home Depot is stuck in a holding pattern right now. The housing market is sluggish, consumers are pulling back on big-ticket home improvement projects, and the company's own CEO acknowledged that any recovery in the second half of the year depends largely on storm activity rather than underlying demand. That is not a particularly inspiring setup.
Carvana, meanwhile, is in the middle of one of the more remarkable business turnarounds in recent memory. The company has strung together 10 consecutive quarters of strong growth and profitability, its balance sheet is in its best shape ever, and it is gaining market share in a used car market that is still largely fragmented. The turnaround from near-bankruptcy to industry leader is one of the more remarkable business stories in recent memory.
For a long-term investor, Carvana's momentum and market opportunity make it the stronger pick right now.
Should you buy stock in Carvana right now?
Before you buy stock in Carvana, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Carvana wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!*
Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 12, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends Lowe's Companies and Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Carvana vs. Home Depot: Which Consumer Stock Is a Better Buy in 2026?

Key Points
The 3,948 shares were withheld to cover tax obligations at $62.36 per share, representing a total transaction value of ~$246,200.
The disposition reduced the insider's direct equity holdings by 1%.
This transaction was non-discretionary and was executed to satisfy tax withholding requirements associated with the vesting of restricted stock units.
Thomas maintains a significant direct equity stake of 387,725 shares with a market value of $25.63 million as of the August 3, 2026 market close.
Taira Thomas, President, Special Projects at Carvana Co. (NYSE:CVNA), disposed of 3,948 shares of Class A Common Stock on Aug. 1, 2026, according to a recent SEC Form 4 filing.
Transaction summary
Transaction value
~$246,200
Shares sold
3,948
Post-transaction shares (directly held)
387,725
Post-transaction value
$25.63 million
Transaction value based on SEC Form 4 weighted average sale price ($62.36).
Key questions
What was the primary driver for this transaction?
The disposition was a non-discretionary transaction to satisfy tax withholding obligations related to the vesting of restricted stock units and does not reflect the insider’s discretionary view of the stock's valuation.
How does this impact the insider's long-term position?
Thomas's overall equity exposure remains substantial, with 387,725 shares held directly following the disposal and a separate award vesting of 80,547 shares reported in the same filing period.
What is the current valuation context for Carvana?
As of the Aug. 3, 2026, market close, the company has a market capitalization of $74.6 billion, supported by trailing twelve-month revenue of $25.1 billion and net income of $1.6 billion.
Company Overview
Share Price (as of market close 2026-08-03)
$66.11
Market Capitalization
$74.6 billion
Revenue (TTM)
$25.1 billion
Net Income (TTM)
$1.6 billion
Company Snapshot
Carvana operates a digital platform that facilitates the purchase and sale of pre-owned vehicles across the United States, with comprehensive services including vehicle sourcing, reconditioning, online transaction capabilities, financing solutions, and complementary products.
The company generates revenue through its integrated business model encompassing vehicle sales, financing services, logistics and delivery operations, and ancillary product offerings, leveraging its proprietary digital platform and specialized logistics network.
Carvana serves consumers seeking convenient, transparent pre-owned vehicle purchasing experiences, targeting customers who prefer digital-first automotive transactions and alternative delivery and pickup methods.
Carvana Co. is a leading digital automotive retailer with a market capitalization of $74.6 billion and TTM revenues of $25.1 billion, positioning it as a significant player in the auto dealership sector. The company's vertically integrated business model—encompassing vehicle sourcing, reconditioning, financing, and proprietary logistics—creates operational efficiency and customer control across the entire transaction lifecycle. Carvana's competitive advantage stems from its technology-enabled platform, distinctive delivery capabilities, and end-to-end service integration, which differentiate it from traditional dealership models.
What this transaction means for investors
Taira Thomas, an executive at Carvana (CVNA), recently sold around 4,000 shares of company stock, according to a recent filing with the SEC. Here are the key takeaways for investors.
To start, not all insider transactions are the same. Indeed, many have very little to do with a stock’s prospects, or an insider’s perspective on those prospects. For example, many insiders are granted lucrative stock options as part of their compensation package. In many cases, when those awards vest, an insider may exercise some or all of them, collecting the proceeds as deferred compensation. This is all part of a wealth management strategy designed to maximize gains, reduce taxes, and manage risk. It shouldn’t be taken as a flashing sell signal for a stock. For that, an investor needs to dig into the company itself.
As for Carvana, it’s been on a bumpy road over the past few years. The stock cratered in the wake of the COVID pandemic, with its share price dropping by an eye-popping 99%. However, since bottoming in late 2022, shares have come back to life. Indeed, since 2021, Carvana stock has generated a total return of 3%, with a compound annual growth rate (CAGR) of 0.6%. This underperforms the S&P 500, which has delivered a total return of 86%, with a CAGR of 13.3% over the same period, but considering Carvana’s enormous drop, a positive total return is amazing.
A key part of the company’s recover has been its operating margins. After logging losses for several years following the pandemic, operating margin now stands at nearly 9%. What’s more, trailing 12-month net income has now climbed past $2.1 billion, up from steady net losses in 2022 and 2023. Yet, despite this turnaround, concerns remain. The used-car market appears to be slowing, which could weigh on the company. In addition, competitors are closing the gap on Carvana’s sales approach, which could act as a long-term threat to the company’s business model.
In summary, Carvana stock has endured a wild ride. For many investors, this volatility simply puts the company out of reach for their portfolio. However, for those with an appetite for risk, the company’s margin growth could offer a compelling thesis.
Should you buy stock in Carvana right now?
Before you buy stock in Carvana, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Carvana wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,502!*
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*Stock Advisor returns as of August 6, 2026.
Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Company Insider Dumps Nearly 4,000 Shares of Used Car Seller

E-commerce used vehicle retailer Carvana CVNA reported earnings of 42 cents per share for the second quarter of 2026, in line with the Zacks Consensus Estimate. Earnings rose 61.5% year over year. Revenues of $7.37 billion increased 52.4% year over year and topped the consensus mark of $6.99 billion by 5.5%. The top-line beat reflected record retail volume and strong vehicle pricing.
Carvana Co. Price, Consensus and EPS Surprise
CVNA's Retail Volume Reaches a Record
Retail vehicle sales increased 61.7% to $5.5 billion, supported by a 17.4% rise in revenue per retail unit to $27,908. Retail units sold advanced 37.7% to 197,325. Retail volumes have nearly doubled over the past two years and continued to outpace an industry that declined year over year. Wholesale sales and revenues grew 31.2% to $1.34 billion, while wholesale unit sales climbed 44.4% to 105,052.
CVNA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Carvana's Gross Profit Rises, GPU Declines
Total gross profit increased 30.1% to $1.38 billion. Retail vehicle gross profit rose 34.4% to $700 million, wholesale gross profit advanced 19.7% to $158 million and other gross profit grew 28.0% to $526 million.
However, total gross profit per unit fell $412 to $7,014, and non-GAAP GPU declined $455 to $7,125. On a sequential basis, total gross profit and non-GAAP GPU improved by $231 and $214, respectively.
CVNA's Margins Reflect Growth Investments
Operating income increased to $680 million from $511 million, but adjusted EBITDA margin contracted to 10.4% from 12.4%. Adjusted EBITDA rose to $769 million from $601 million, showing strong dollar profit growth even as the margin narrowed.
Net income advanced 66.6% to $513 million. Selling, general and administrative expenses increased to $704 million from $551 million as advertising, logistics and other costs rose.
Carvana Expands Production Capacity
Inventory selection remains central to the company’s growth plan. Carvana integrated retail production capabilities at three additional ADESA sites during the quarter, bringing the total to 19, and began construction on its first full buildout at an ADESA location.
The current footprint provides fully built-out annual capacity for about 1.5 million retail units, with additional real estate available for expansion. The new full buildout is expected to begin producing vehicles in early 2027.
CVNA Builds Cash and Liquidity
Cash and cash equivalents totaled $2.63 billion as of June 30, 2026, up from $2.32 billion at year-end 2025. Committed liquidity resources were $4.67 billion, while total liquidity resources increased to $7 billion from $6.74 billion. For the first six months of 2026, net cash provided by operating activities rose to $345 million from $261 million.
Carvana Sets Full-Year EBITDA Outlook
For the third quarter, management expects retail units sold to increase sequentially from the second quarter. For full-year 2026, Carvana projects adjusted EBITDA of $2.7-$3 billion, compared with $2.24 billion in 2025. It also reiterated its long-term path toward selling 3 million vehicles annually and achieving a 13.5% adjusted EBITDA margin between 2030 and 2035.
Key Releases From the Auto Space
General Motors GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Ford F reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Carvana Co. (CVNA) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CVNA Q2 Earnings Meet Estimates, Revenues Beat on Unit Growth

Key Points
Booking maintains a highly profitable global travel platform with robust net margins.
Carvana is rapidly scaling its digital automotive model while expanding into new-car retail.
Which consumer-facing platform is the better addition to your portfolio in 2026?
Investors choosing between Booking (NASDAQ:BKNG) and Carvana (NYSE:CVNA) are weighing a dominant travel powerhouse against a high-growth disruptor in the automotive market. This choice comes at a time when consumer spending habits are shifting toward digital-first service experiences.
Booking operates as a global intermediary for travel services, while Carvana digitizes the used-car buying and selling experience. Both companies rely on discretionary spending but occupy very different niches in the retail and service landscapes, offering unique profiles of stability and expansion.
The case for Booking
Booking Holdings operates a massive portfolio of travel brands including Booking.com, Agoda, KAYAK, and OpenTable across the travel and tourism stocks space. The company maintains non-exclusive agreements with various hotels, airlines, and rental car companies, partnering with platforms like Alphabet for traffic acquisition. In June 2026, the company established a new partnership with The Trade Desk to leverage its proprietary travel data for more effective advertising campaigns.
In FY 2025, revenue reached nearly $26.9 billion, representing growth of roughly 13.4% compared to the previous year. The company reported a net income of close to $5.4 billion for the same period. This resulted in a net margin of approximately 20.1%, which measures how much profit a business retains from its total sales after all costs are paid.
As of its December 2025 balance sheet, the current ratio, which measures the ability to pay short-term debts with short-term assets, was nearly 1.3x. Free cash flow for FY 2025 was about $9.1 billion, which is the cash a company generates after accounting for the costs to maintain or expand its physical assets like equipment.
The case for Carvana
Carvana is an online retailer for used vehicles that expanded into new-car sales in 2026 by acquiring multiple dealerships from Stellantis. It serves U.S. customers through a nationwide network of home delivery and local pickup services. The company also holds a strategic warrant to invest in Slate Auto, an electric vehicle startup, as it looks toward the future of the automotive market.
In FY 2025, revenue reached nearly $20.3 billion, representing growth of close to 48.6% from the previous fiscal year. The company reported a net income of approximately $1.4 billion during this time. This performance resulted in a net margin of roughly 6.9% for the period, reflecting its focus on scaling the business volume rapidly.
As of its December 2025 balance sheet, the debt-to-equity ratio was about 1.6x. The current ratio stood at nearly 4.3x, showing a high level of short-term liquidity relative to its immediate debts. Free cash flow for FY 2025 was close to $889.0 million, and investors often watch the P/S ratio to see how the market values this growing revenue stream.
Risk profile comparison
Booking faces intense competition from global technology companies like Alphabet and AI-native platforms that may bypass traditional travel booking sites. It also deals with regulatory risks under the EU Digital Markets Act, where it has been designated as a gatekeeper. Geopolitical volatility and the risk of AI-enabled cyberattacks on its large volume of customer data remain primary concerns for the business.
Carvana faces legal and regulatory exposure regarding its advertising and lending practices, along with litigation over vehicle safety issues. It relies heavily on the automotive finance market, meaning a decline in investor demand for its loan products could hurt its liquidity. The company also faces competition from CarMax and challenges in successfully integrating its newly acquired physical dealership locations.
Valuation comparison
Booking offers a more modest Forward P/E, while Carvana trades at a higher premium relative to future earnings estimates due to its rapid expansion.
Metric
Booking
Carvana
Forward P/E
18.5x
38.5x
P/S ratio
5.6x
3.3x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with Booking, although Carvana's comeback story is one of the more impressive in recent memory. Carvana has strung together 10 consecutive quarters of strong growth and profitability, and its operational improvements have been substantial. For investors who followed the turnaround early, the rewards have been enormous.
But at current prices, Carvana is asking investors to pay a premium valuation at a moment when its guidance came in below Wall Street expectations and there are early signs of margin pressure. That is a harder combination to get comfortable with as a new buyer.
Booking, by contrast, is the more attractively priced business right now despite being the steadier, more profitable one. It operates across more than 200 countries, consistently beats earnings estimates, and returns substantial cash to shareholders. Global travel demand is durable, and Booking sits at the center of it.
For a long-term investor, owning the more profitable business at the better price is usually the right call.
Should you buy stock in Booking Holdings right now?
Before you buy stock in Booking Holdings, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Booking Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $396,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,300,820!*
Now, it’s worth noting Stock Advisor’s total average return is 939% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 5, 2026.
Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Booking Holdings, CarMax, and The Trade Desk. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Booking vs. Carvana: Which Consumer Stock Is a Better Buy in 2026?

Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned cash to make a purchase, is that they expect to make money. Today we look at two noteworthy recent insider buys.
On Tuesday, CoStar Group's CEO, Andrew C. Florance, made a $2.49M buy of CSGP, purchasing 83,300 shares at a cost of $29.89 each. CoStar Group is trading off about 0.2% on the day Wednesday. Before this latest buy, Florance bought CSGP at 2 other times during the past year, for a total cost of $4.99M at an average of $39.28 per share.
And on Friday, Director Michael E. Maroone bought $1.54M worth of Carvana, buying 25,000 shares at a cost of $61.80 each. Before this latest buy, Maroone made one other purchase in the past year, buying $2,207 shares for a cost of $441.36 each. Carvana is trading up about 2.3% on the day Wednesday. Maroone was up about 13.6% on the purchase at the high point of today's trading session, with CVNA trading as high as $70.18 at last check today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	38.95 18.27
Price/Sales	1.99 0.68
P/B	29.14 1.73
P/FCF	87.37 13.56

Indicator	TTM Median
ROE	37.06 14.93
ROA	12.21 5.11
ROI	17.30 8.85
Net Worth	54.36 0.84
Quick Ratio	2.57 0.86
Current Ratio	3.93 1.39

Indicator	TTM Median
Net Profit Margin	6.26 5.79
Operating Margin	8.93 8.49
Gross Margin	19.37 39.55
Return on tangible equity	42.03 21.78

Indicator	TTM Median
EPS	0.42 0.55
EPS Forecast	0.42 0.50
Revenue	7.38B 193.00M
Gross Profit	1.38B —
EBITDA	753.00M —

Carvana Co.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue