The used car market is experiencing a dramatic divergence as traditional retailer Carmax plunges to 52-week lows while digital disruptor Carvana continues its remarkable rally. High interest rates and loan losses are hammering Carmax’s traditional business model, while Carvana’s online-first approach attracts younger buyers and drives record growth, creating a tale of two automotive retailers navigating the same challenging economic landscape.
about Carmax Plunges, Carvana Soars: Used Car Market Split
CVNA
Carvana’s Debt Risk Threatens Meme Stock Surge
Carvana’s spectacular stock recovery from near-bankruptcy to meme stock darling faces a hidden threat. A Morningstar report reveals alarming delinquency rates in the company’s older subprime auto loan portfolios. While recent financials show strong performance, these legacy loans could undermine investor confidence in the high-flying retailer.
about Carvana's Debt Risk Threatens Meme Stock SurgeJim Chanos Reveals Top Short Picks Amid AI Boom
Jim Chanos, founder of Kynikos Associates, has revealed his latest short targets, focusing on companies he believes will suffer from AI advancements. He singled out IBM as a prime candidate, citing its stagnant growth and high valuations despite being an ‘IT body shop’ vulnerable to AI competition. Chanos also highlighted Carvana, noting its massive 7,961% rally but warning of insider selling and reduced short interest. His analysis draws parallels to the Dot-com bubble, where many inflated stocks eventually collapsed. These picks reflect Chanos’ contrarian approach to identifying overvalued companies facing structural challenges.
about Jim Chanos Reveals Top Short Picks Amid AI BoomUS Stock Futures Steady Amid Tariff Concerns and Fed Minutes Release
US stock futures remained flat as investors assessed President Trump’s new tariff threats and awaited the Federal Reserve’s meeting minutes. The S&P 500 reached a record high, while Asian markets declined amid concerns over the sustainability of a recent rally in Chinese stocks.HSBC reported a 6.6% rise in annual profit, exceeding expectations, and announced a $2 billion share buyback. Oil prices increased as tensions from the Ukraine-Russia conflict continued to disrupt supply, with Brent crude futures climbing for a third consecutive day.
about US Stock Futures Steady Amid Tariff Concerns and Fed Minutes ReleaseMarket Highlights for the Week: Earnings Reports and Economic Data
Markets are closed Monday for Presidents Day, with key earnings reports from Walmart, Alibaba, Baidu, Carvana, and Rivian scheduled throughout the week. Investors will also focus on the release of January’s Federal Reserve meeting minutes, housing data, and consumer sentiment indicators. Notable Fed officials are set to speak, providing insights into future monetary policy.
about Market Highlights for the Week: Earnings Reports and Economic DataStock Market Update: Nvidia and Micron Surge Amid Positive Developments
Dow futures are struggling as traders await jobs data. Nvidia shares rose 1.5% following CEO Jensen Huang’s positive CES speech, while Micron Technology surged nearly 6% after being mentioned as a memory supplier. Carvana and Uber Technologies also saw gains of 4% and over 3%, respectively, with Carvana’s rating upgraded and Uber collaborating with Nvidia on autonomous driving.
about Stock Market Update: Nvidia and Micron Surge Amid Positive DevelopmentsStock Market Update Dow Jones Rises Nvidia Recovers Amid Mixed Performance
The Dow Jones Industrial Average rose 0.3% as it aimed to end a four-day losing streak, while the S&P 500 and Nasdaq gained 0.5% and 0.7%, respectively. Nvidia surged 3.3%, reclaiming its 50-day line, and Rivian jumped over 17% after exceeding vehicle delivery expectations. In contrast, Carvana fell 3.7% following a negative report questioning its accounting practices.
about Stock Market Update Dow Jones Rises Nvidia Recovers Amid Mixed PerformanceStock Market Update US Steel Drops Tesla Edges Higher Amid Mixed Trends
U.S. stock futures are trending higher after a rocky start to 2025, with Nasdaq futures up 0.4% and S&P 500 and Dow futures rising about 0.2%. U.S. Steel shares plummet 8% amid reports that President Biden will block its $14.1 billion merger with Nippon Steel over national security concerns. Tesla’s stock edges up after a five-session decline, while Carvana’s shares slide further following a short seller’s report questioning its loan practices. Constellation Energy and Vistra stocks gain on optimism surrounding nuclear power deals and rising electricity demand.
about Stock Market Update US Steel Drops Tesla Edges Higher Amid Mixed Trends