CarMax Stock Stalls on Q2 Earnings Setback

Core Insights - CarMax Inc (NYSE:KMX) shares have dropped 22.2%, trading at $44.37 after missing fiscal second-quarter expectations, reporting earnings of $0.64 on revenue of $6.59 billion, with declines in wholesale and used vehicle segments [1] - The stock is on track to extend its losing streak to five sessions, marking one of its steepest losses since 2022, trading at five-year lows and below the $50 level for the first time in that period, having already lost 45.8% in 2025 [2] Market Sentiment - At the International Securities (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), KMX's 50-day call/put ratio of 2.63 is in the 80th percentile of the last year, indicating a potential unwinding of optimism in the options market that could create additional headwinds for the equity [3] - CarMax stock is experiencing increased bearish attention, with 21,000 puts placed today, which is 24 times the usual intraday amount, with the October 40 put being the most popular contract [4]