Carvana just dropped an earnings report so absurdly good it should’ve sent the stock into orbit. Instead? It’s getting absolutely curb-stomped in after-hours trading, down 12%, because Wall Street is full of emotionally unstable analysts who will find any excuse to tank a stock.

(Source: Giphy) 

In short, Carvana’s revenue clocked in at $13.67 billion with $404 million in net income. Not bad at all. But the real mind-melting number on Carvana’s sheet? $1.38 billion in adjusted EBITDA in 2024(for those of you following Carvana closely over the past year, you can pick your jaw off the floor now). Translation: $1.36 billion in adjusted EBITDA isn’t just a massive win—it’s the sound of  Carvana essentially becoming the most profitable public auto retailer in U.S. history by adjusted EBITDA margin. And yet, here we are, watching the stock get murdered because investors are so addicted to the pessimism on the aura of this stock that they couldn’t fathom Carvana actually coming out on top. 

(Source: MarketWatch) 

Now with that said, let’s address the so-called problem that pissed off investors: margin compression. Yes, adjusted EBITDA margin dipped from 11.7% in Q3 to 10.1% in Q4. Yet, while that’s definitely a decline, let's not lose sight of the bigger picture—a concept that seems completely foreign to some of these analysts. Carvana still posted a 498% surge in EBITDA from last year ($359 million from $60 million a year ago). Meaning, the fact that anyone panic-sold this stock is proof that the market is less about logic and more about whatever mood swing strikes first.

(Source: Yahoo Finance) 

What’s more, is that there is another layer to this post-earnings stupidity within Wall Street—guidance, or the lack thereof. Carvana could’ve come out and said, “We expect 2025 to cure cancer and solve world hunger,” and Wall Street still would’ve found something to complain about. Instead, the company played it safe, saying they expect “significant growth” in retail unit sales and adjusted EBITDA. But because they didn’t spoon-feed investors an exact number, the selloff commenced.

(Source: Giphy) 

So yeah, even though Carvana’s internal logistics are looking quite promising after their earnings showing—externally, the fear-mongering within the used car market isn’t helping much either. Yes, interest rates are still high, and yes, the broader auto market is as unpredictable as a coked-up broker at Stratton Oakmont. But Carvana just doubled its retail unit sales in Q4, so maybe—just maybe—this company isn’t as fragile as the analysts who keep underestimating it.

In the end, it’s clear that Carvana has officially clinched one of the most ridiculous growth stories in recent retail history, and instead of rewarding it, Wall Street does what it does best: absolutely KILLING the buzz. Translation: If you ever needed proof that markets are just a casino where the house always wins, this is it.

(Source: Giphy) 

For now though, I’d definitely keep an eye on Carvana as the story is written in the financials. Sure, the stock is taking a beating after the earnings (primarily due to margin fluctuations and somewhat vague guidance), but you can’t look past the top and bottom line numbers. Meaning, get your “BTFD” game-face on and place your bets accordingly, friends. And as always, stay safe and stay frosty! Until next time…

P.S. If I sounded a bit salty in today’s article, it’s because I am. Wall Street doesn’t care about the underlying value of the stock, and they sure as hell don’t care about giving you the truth.

They care about narratives, about moving money around in a way that benefits the big players, and about keeping retail investors just uninformed enough to be the ones left holding the bag. If you think the mainstream financial news is giving you the real story, you’re already a step behind.

I’m not here to hard sell you on anything, but this is precisely why Stocks.News even exists (and why I have a job LOL)—to cut through the noise and tell it like it is. No Wall Street spin. No sugar coated earnings reports. Just real analysis, real insights, and the kind of financial news that actually helps you work towards making money within this mind-numbing market instead of losing it.

So with that said, I’m going to give it to you as straight as I can:  If you’re tired of reading the same polished, PR-approved BS that the big banks want you to believe, it’s time to upgrade. Click here to get the unfiltered truth of Stocks.New premium, because at the end of the day, the market isn’t playing fair—so why should you?

Stocks.News does not hold positions in companies mentioned in the article.