Carvana (CVNA) stock, once a high-flyer in the auto space, has seen its share price take a sharp dive, reflecting both company-specific challenges and broader industry headwinds. The online marketplace for used cars reported a sequential decline in revenue per retail unit sold in the fourth quarter. The figure dropped to $22,312 from $23,405 in the prior quarter.
Also, its profit per vehicle took a hit. Carvana’s adjusted retail gross profit per unit (GPU) fell to $3,331 from $3,617 in Q3 2024, due largely to increased depreciation and tightening spreads in the used car market. These developments weighed heavily on investor sentiment.
