Carvana's Strong Q2 Print Reignites Retail Trader Concerns Over Inflated Numbers

Retail sentiment for Carvana (CVNA) remained 'bearish' late Wednesday despite the online used-car retailer's strong earnings report, with some Stocktwits users voicing skepticism, suggesting the results seem almost too good to be true and may warrant a deeper investigation.

Carvana was among the top 10 trending tickers, with message volume around the stock surging over 375% in the last 24 hours, according to Stocktwits data.

The company said revenue in its second quarter rose 42% to $4.84 billion, and it sold a record 143,280 car units in the period. Analysts surveyed by FactSet were expecting revenue of $4.58 billion.

Adjusted profit rose to $1.28 per share from $0.14 in the year-ago quarter. That, too, easily beat expectations of $1.17.

Carvana has drawn increased investor interest in recent months as the used-car market heats up amid Trump-era tariffs. With buyers looking to hedge against potential price hikes, demand is shifting toward more affordable options, particularly used vehicles.

However, a 64% stock gain year-to-date, and about 40% year-on-year sales growth in the preceding Q1 2025 and Q4 2024 are making some investors jittery.

"There's no way those books are legit. People are calling them out left and right," a user said. "They're worth more than some of the major car brands. It's impossible."

Carvana’s market capitalization stands at over $45 billion as of the last close. That’s more than that of Ford, Stellantis or Rivian. 

It is not the first time the company has stirred up such concerns. A Hindenberg report in January accused the e-commerce car company of accounting manipulation, including handing out millions of dollars in suspicious loan sales to undisclosed customers.

Carvana said it has been subpoenaed by the Securities and Exchange Commission for information related to the Hindenburg report.

Another Stocktwits user remarked in a lighter vein: "$CVNA the netflix special on this scam in 5 years will be a fun watch." 

Yet another said, “A collapse is coming. Be very diligent!”

Notwithstanding these claims, Carvana shares rose 15% in extended trading, following the results.

"Looking toward the third quarter, as long as the environment remains stable, Carvana expects a sequential increase in retail units sold and Adjusted EBITDA of $2.0 to $2.2 billion for the full year 2025, an increase from $1.38 billion last year," the company statement said.

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