We recently published a list of 10 Firms Buck Broader Market Optimism. In this article, we are going to take a look at where Carvana Co. (NYSE:CVNA) stands against other firms buck broader market optimism.
Wall Street’s main indices finished in the green territory on Friday amid a series of catalysts buoying investor appetite.
The Dow Jones Industrial Average rose by 0.80 percent, while the S&P 500 and Nasdaq Composite rallied by 1.26 percent and 1.77 percent, respectively.
Despite the wider optimistic sentiment, 10 companies managed to post declines. Here is why:
To come up with Friday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A customer buying a used car with the help of a finance specialist.
Carvana Co. (NYSE:CVNA)
Shares of Carvana Co. (NYSE:CVNA) dropped for a fifth day on Friday following news that a shareholder law firm was investigating the company over alleged violations of the securities law.
According to reports, the Schall Law Firm initiated a probe into Carvana’s (NYSE:CVNA) alleged false and misleading statements and its failure to disclose information pertinent to investors.
The investigation stemmed from a recent report published by Hindenburg Research on January 2, 2025, titled: “Carvana: A Father-Son Accounting Grift For The Ages,” which alleged that the company’s turnaround is a “mirage.”
“Our research uncovered $800 million in loan sales to a suspected undisclosed related party, along with details on how accounting manipulation and lax underwriting have fueled temporary reported income growth—all while insiders cash out billions in stock,” the report claimed.
Overall, CVNA ranks 2nd on our list of firms buck broader market optimism. While we acknowledge the potential of CVNA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVNA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.