Carvana Drops 15% This Week: Here’s The 3 Biggest Storylines

Core Viewpoint - Carvana's stock has experienced a significant decline of 14.98% over the past week, driven by insider selling and negative sentiment on social media regarding potential fraud allegations [2][6]. Group 1: Stock Performance - Carvana closed at $343.19, marking a year-to-date decline of 18.68%, although it remains up 26% over the past year [2]. - The broader market and Consumer Discretionary sector saw smaller declines of 1.29% and 1.54%, respectively, indicating Carvana's performance is notably worse than its peers [2]. Group 2: Insider Selling - Carvana's executives have been actively selling shares, with CFO Mark Jenkins selling 12,058 shares and COO Benjamin Huston unloading 10,628 shares on February 2, 2026 [3]. - This trend of selling has been ongoing, with Chief Product Officer Daniel Gill selling over 120,000 shares in December 2025 at prices between $429 and $476 [4]. - The lack of open-market purchases by executives raises concerns about confidence in the company's future, as only 55 open market buys were recorded over the past year [5]. Group 3: Retail Investor Sentiment - Sentiment among retail investors has turned negative, particularly on Reddit, where discussions about Carvana shifted from valuation concerns to serious allegations of fraud [6]. - A post alleging fraud gained significant traction, receiving 153 upvotes and 145 comments, indicating a growing concern among retail investors [6]. - Sentiment scores for Carvana dropped from 18 to a range of 10-12, reflecting the deteriorating perception of the company [7]. Group 4: Valuation Comparison - Carvana's price-to-earnings ratio stands at 78x, significantly higher than CarMax's 15x, highlighting a disparity in valuation amidst sector pressures [7].