Core Insights - The consumer discretionary sector has identified oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - The Relative Strength Index (RSI) is a momentum indicator that helps assess stock performance, with an RSI below 30 indicating oversold conditions [1] - A list of major oversold stocks in the consumer discretionary sector includes Kohls Corp, Rush Street Interactive Inc, and Carvana Co, all having an RSI near or below 30 [2] Group 2: Kohls Corp Analysis - Kohls Corp (NYSE: KSS) has an RSI value of 29.6, indicating it is oversold [3] - The stock price of Kohls fell approximately 17% over the past month, reaching a 52-week low of $6.04 [3] - On the latest trading day, Kohls shares closed at $17.22 after a decline of 3.2% [3] - Kohls has an Edge Stock Rating with a momentum score of 86.20 and a value score of 96.75 [3]

Core Viewpoint - The consumer discretionary sector has several oversold stocks that present potential buying opportunities for undervalued companies [1]. Group 1: Oversold Stocks - The Relative Strength Index (RSI) is a momentum indicator used to assess stock performance, with an RSI below 30 indicating that a stock is typically considered oversold [1]. - A list of major oversold stocks in the consumer discretionary sector includes Kohls Corp, Rush Street Interactive Inc, and Carvana Co, all having an RSI near or below 30 [2]. Group 2: Kohls Corp Analysis - Kohls Corp (NYSE: KSS) has an RSI value of 29.6, indicating it is oversold [3]. - The stock price of Kohls fell approximately 17% over the past month, reaching a 52-week low of $6.04 [3]. - On the latest trading day, Kohls shares decreased by 3.2%, closing at $17.22 [3]. - Jefferies analyst Blake Anderson has assigned a Hold rating to Kohls, with an Edge Stock Rating showing a momentum score of 86.20 and a value score of 96.75 [3].

Core Viewpoint - Carvana Co. is facing scrutiny following a report from Gotham City Research alleging significant accounting irregularities and undisclosed related-party transactions, leading to a substantial drop in its stock price [2][3]. Group 1: Investigation Details - Moore Law, PLLC is investigating potential claims against Carvana's officers and directors due to the allegations raised by Gotham City Research [1]. - The stock price of Carvana fell approximately 20% to $376.46 before closing at $410.04 after the report was released [2]. - Gotham's report claims that Carvana overstated its earnings for 2023-2024 by over $1 billion and relied heavily on related-party transactions [3]. Group 2: Financial Implications - The report highlights that DriveTime's financial struggles, including burning through more than $1 billion in cash over 2023 and 2024, significantly impacted Carvana's adjusted EBITDA [3]. - There are concerns regarding a delayed 2025 10-K filing and potential restatements of past annual reports, with auditor Grant Thornton identified as a possible weak link in the financial oversight [3].

Core Viewpoint - Carvana Co. is under investigation for potential violations of federal securities laws due to significant stock price drops linked to claims of accounting improprieties [1][2]. Company Overview - Carvana operates as an online e-commerce platform and used-car retailer, facilitating the buying, selling, and financing of vehicles entirely online. A substantial portion of its revenue is derived from online vehicle sales and auto loans, which are often securitized or sold to external parties [3]. Investigation Details - The investigation by Bleichmar Fonti & Auld LLP focuses on whether Carvana overstated its earnings and improperly accounted for related party transactions [3]. - Gotham City Research LLC released a report alleging that Carvana's financial results are closely tied to a network of related entities controlled by Ernest Garcia II, including DriveTime, Bridgecrest, and GoFi. The report claims that these relationships led to an overstatement of Carvana's earnings by over $1 billion, indicating substantial risks for investors [4]. Stock Performance - Following the release of the Gotham City report, Carvana's stock price fell over 20%, dropping from $474.06 per share at market open on January 28, 2026, to a low of $374.55 per share [5].

Photographer: Angus Mordant/Bloomberg Carvana Co.’s shares fell the most in more than nine months after a short seller alleged the online auto retailer overstated earnings with the help of close ties to businesses controlled by the family of Chief Executive Officer Ernie Garcia III. The report by Gotham City Research alleged that Carvana has not fully disclosed all the benefits it receives from DriveTime, a privately held used-car retailer and subprime lender owned and controlled by Ernie Garcia II, the ...

Core Viewpoint - Carvana's shares dropped 14.2% following allegations from short-sellers that the company overstated its earnings by over $1 billion, raising concerns about its dependence on related parties controlled by CEO Ernie Garcia III's family [1][2] Group 1: Allegations and Financial Impact - Gotham City Research accused Carvana of overstating its 2023-2024 earnings significantly, claiming the figure exceeded $1 billion [1] - The report suggests that Carvana is more reliant on related parties than previously disclosed, which could impact its financial stability [1] Group 2: Ownership and Financial Disclosure - The short-seller published audited financials of DriveTime Automotive Group, Inc. and Bridgecrest Acceptance Corp., both owned by Ernest Garcia II, who is Carvana's largest shareholder and the father of the CEO [2] - CNBC did not independently verify the authenticity of the financial results, which Gotham claimed to have obtained through the Freedom of Information Act [2]

Group 1: Market Performance - Nvidia ranked first in trading volume, closing up 1.58% with a transaction volume of $27.873 billion, amid a general rise in the semiconductor sector [1][9] - Tesla ranked second, closing down 0.10% with a transaction volume of $21.42 billion, reporting Q4 earnings per share of $0.24, down from $0.66 year-over-year, and a revenue of $24.9 billion, a 3.1% decrease year-over-year [1][9] - Micron ranked third, closing up 6.10% with a transaction volume of $17.715 billion, as the storage sector saw a general increase [1][9] Group 2: Company-Specific Developments - Apple closed down 0.71% with a transaction volume of $10.176 billion; only 6% of surveyed iPhone buyers chose the iPhone Air, significantly lower than the iPhone 17 series [2][10] - Intel closed up 11.04% with a transaction volume of $9.673 billion, as it announced a new initiative to match federal funds for employees' children [2][10] - Carvana saw a significant drop of 14.17%, closing at $8.062 billion, with allegations of artificially inflating profits by $1 billion, while its reported net profit for 2023-2024 was approximately $550 million [4][13] Group 3: Financial Results and Forecasts - Tesla's Q4 adjusted earnings per share were $0.50, exceeding the estimate of $0.45, while its free cash flow decreased by 30% year-over-year [1][9] - Seagate Technology's Q2 results exceeded expectations, with a 19.14% increase in stock price and a transaction volume of $6.379 billion, providing a positive outlook for the future [6][14] - Amphenol reported a sales figure of $6.43 billion for Q4 2025, a 49% year-over-year increase, surpassing market expectations [6][15]

Core Insights - Carvana's stock experienced a significant decline of 20% following allegations from Gotham City Research, which accused the company of inflating profits to mislead investors and benefit its largest shareholder [1][1][1] Group 1: Stock Performance - Carvana's stock surged 10,000% over the past three years due to a turnaround effort, which is now being questioned by short sellers [1][1] - The stock fell 15% on Wednesday, erasing year-to-date gains and approaching its lowest price since early December [1][1] - Despite the recent slump, Carvana shares have increased approximately 10,000% since hitting an all-time low in December 2022 [1][1] Group 2: Allegations and Accusations - Gotham City Research claims Carvana overstated its profits by $1 billion for the years 2023 and 2024, while the company reported a total net income of about $550 million for those years [1][1] - The report echoes previous accusations from Hindenburg Research and Jim Chanos regarding Carvana's accounting practices [1][1] - Allegations suggest that Carvana inflated profits through dealings with companies owned by Ernest Garcia II, its largest shareholder [1][1] Group 3: Company Background and Developments - Carvana faced a dramatic decline in value between 2021 and late 2022 before initiating a turnaround in 2023, which included cost cuts and a deal with creditors [1][1] - The company's recent addition to the S&P 500 marked a significant milestone in its recovery efforts [1][1]

Core Viewpoint - Block & Leviton is investigating Carvana Co. for potential securities law violations following a report alleging that the company's profitability is based on undisclosed related-party transactions [1][2]. Group 1: Company Performance and Allegations - Carvana's shares fell over 20% on January 28, 2026, after a report from Gotham City Research claimed that the company relies on undisclosed transactions with DriveTime and Bridgecrest to report profitability [2]. - The report alleges that DriveTime incurred over $1 billion in cash losses while leveraging up to 20x to 40x EBITDA to support Carvana's earnings [2]. - It is also claimed that Bridgecrest marked down billions in loans while Carvana recognized gains from loan sales [2]. Group 2: Legal Actions and Investor Information - Block & Leviton is investigating whether Carvana committed securities law violations and may file an action to recover losses for affected investors [4]. - Investors who purchased Carvana common stock and experienced a decline in share value may be eligible to participate in the investigation, regardless of whether they sold their shares [3]. - The firm encourages investors who have lost money to contact them for more information on potential recovery options [5]. Group 3: Whistleblower Information - Individuals with non-public information about Carvana are encouraged to assist in the investigation or report to the SEC under the whistleblower program, which offers rewards of up to 30% of any successful recovery [6]. Group 4: Firm's Reputation and Services - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].

Core Viewpoint - Block & Leviton is investigating Carvana Co. for potential securities law violations following a report alleging that the company's profitability is based on undisclosed related-party transactions [2][4]. Group 1: Investigation Details - Carvana's shares fell over 15% on January 28 after Gotham City Research reported that the company's earnings were subsidized by DriveTime, which reportedly burned over $1 billion in cash while leveraging 20x to 40x EBITDA [2]. - The report also claims that Bridgecrest marked down billions in loans as Carvana recognized gains on loan sales [2]. Group 2: Eligibility and Actions - Investors who purchased Carvana Co. common stock and experienced a decline in share value may be eligible to recover losses, regardless of whether they sold their investment [3]. - Block & Leviton is actively investigating potential securities law violations and may file actions to recover losses for affected investors [4]. Group 3: Whistleblower Information - Individuals with non-public information about Carvana Co. are encouraged to assist in the investigation or report to the SEC under the whistleblower program, potentially receiving rewards of up to 30% of any successful recovery [6]. Group 4: Firm's Reputation - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].