Carvana vs AutoZone

Carvana and AutoZone are compared on this page to explore how their business models, financial performance, and market context relate. The aim is to provide a clear, neutral overview that supports understanding of industry context. Educational content, not financial advice.

Carvana and AutoZone are compared on this page to explore how their business models, financial performance, and market context relate. The aim is to provide a clear, neutral overview that supports und...

Comparison Snapshot

Key Financial Metrics

CVNA

Metric

AZO

$88.73B

Market Cap

$61.67B

8.12%

Potential Profit

18.33%

Buy

Analyst Rating

Buy

Why It's Moving

Carvana stock tumbles amid short seller firestorm over alleged accounting red flags.

Gotham City report alleges $1B in accounting irregularities and overstated 2023-2024 earnings via undisclosed relationships, sparking a 14% single-day drop.
Shares closed Friday down 6.16% at $401.11, underperforming broader market declines and erasing much of January's gains amid heightened scrutiny.
Analysts push back with BTIG holding Buy rating and $535 target, betting on Carvana's robust Q3 EBITDA of $637M and strong liquidity.

Sentiment:

🌋Volatile

AutoZone SVP's $21.8M Share Sale Sparks Investor Scrutiny Amid Recent Margin Pressures.

SVP Richard Craig Smith exercised options at $587/share and sold 5,910 shares at $3,700 apiece on Jan 23, reducing his direct holdings to 2,627 shares.
Institutional tweaks include Truist Financial cutting its stake by 17.3% in Q3 to a $20.4M position, alongside smaller sales by Krilogy and New York State fund.
Analysts adjusted targets lower—Morgan Stanley to $4,000, UBS to $4,325—citing elevated SG&A spending and gross margin hits, yet consensus stays at Moderate Buy.

Sentiment:

🐻Bearish

Carvana stock tumbles amid short seller firestorm over alleged accounting red flags.

Gotham City report alleges $1B in accounting irregularities and overstated 2023-2024 earnings via undisclosed relationships, sparking a 14% single-day drop.
Shares closed Friday down 6.16% at $401.11, underperforming broader market declines and erasing much of January's gains amid heightened scrutiny.
Analysts push back with BTIG holding Buy rating and $535 target, betting on Carvana's robust Q3 EBITDA of $637M and strong liquidity.

Sentiment:

🌋Volatile

AutoZone SVP's $21.8M Share Sale Sparks Investor Scrutiny Amid Recent Margin Pressures.

SVP Richard Craig Smith exercised options at $587/share and sold 5,910 shares at $3,700 apiece on Jan 23, reducing his direct holdings to 2,627 shares.
Institutional tweaks include Truist Financial cutting its stake by 17.3% in Q3 to a $20.4M position, alongside smaller sales by Krilogy and New York State fund.
Analysts adjusted targets lower—Morgan Stanley to $4,000, UBS to $4,325—citing elevated SG&A spending and gross margin hits, yet consensus stays at Moderate Buy.

Sentiment:

🐻Bearish

Investment Analysis

Carvana

CVNA

Pros

Carvana has demonstrated strong revenue growth, achieving a 55% increase to $5.65 billion in Q3 2025, surpassing analyst expectations.
The company improved profitability metrics, with adjusted EBITDA rising 45% and GAAP net income increasing 78% year-over-year.
Carvana benefits from a high current ratio of 4.1, indicating strong liquidity and the ability to meet short-term liabilities efficiently.

Considerations

Carvana’s stock remains highly volatile, with frequent large price swings reflecting market uncertainty about its business outlook.
Despite recent gains, the company holds a relatively aggressive leverage ratio of 4.3, which may pose financial risk amid economic challenges.
The company’s P/E ratio above 75 suggests the stock is priced for high growth, presenting potential valuation risk relative to earnings.

AutoZone

AZO

Pros

AutoZone has a strong market position as one of the leading automotive aftermarket retailers in the United States with a widespread store network.
The company exhibits consistent profitability with solid cash flows, supporting steady dividend payments and reinvestment capabilities.
AutoZone benefits from stable demand driven by the non-cyclical nature of auto parts and maintenance services.

Considerations

AutoZone faces exposure to macroeconomic risks such as changes in consumer spending and vehicle age trends that can impact parts demand.
Increasing competition from e-commerce and other retailers could pressure market share and margins over time.
The company’s large footprint entails significant fixed costs, which may limit flexibility to rapidly adapt to market disruptions.

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