Core Insights - Carvana's stock dropped over 10% to $318 after reporting fourth-quarter profit metrics that fell below expectations, leading to a loss of about one-quarter of its value since the start of the year [1][1][1] Financial Performance - The company's gross profit per unit declined year-over-year to $6,427 for the fourth quarter, which was below analysts' expectations [1][1] - Carvana reported a 58% year-over-year increase in revenue, reaching $5.6 billion in the fourth quarter, surpassing analyst consensus [1][1] Cost Concerns - Carvana indicated that some costs were higher than anticipated and warned of potentially elevated vehicle reconditioning costs in the first quarter, although it expects per-vehicle profits to improve [1][1] Analyst Sentiment - Following the results, analysts from Wedbush and JPMorgan reduced their price targets for Carvana to $425 and $490, respectively, but both firms remain optimistic about the company's growth potential [1][1] - Twelve out of thirteen analysts tracked by Visible Alpha have issued "buy" or equivalent recommendations, with an average price target of $450, suggesting nearly 30% upside from the current stock level [1][1]