Carvana sold a record number of cars and Chipotle's traffic held up, sending both stocks higher after hours. Ford's EV losses and a small ServiceNow miss weighed on those two stocks.
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Carvana (CVNA) sold 197,325 vehicles in the second quarter, up 38% from a year earlier, with record revenue of $7.38 billion and net income of $513 million. Higher interest rates are squeezing profit per car, as the spread the company earns on auto loans narrows when benchmark rates rise faster than customer APRs. Morgan Stanley kept its Overweight rating but cut its price target to $88 from $90 and its adjusted EBITDA estimate by 2% to $797 million. It models third-quarter Other GPU of $2,565 and calls the quarter a potential “clearing event” that could reset expectations before growth returns to focus. Carvana shares are down 30.30% year-to-date ahead of its October 28 report.
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