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CarMax Stock Plummets Amid Weak Earnings and Consumer Demand Concerns
CarMax Stock Plummets Amid Weak Earnings and Consumer Demand Concerns
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BTCCSquare news:
CarMax (KMX -1.61%), the largest omnichannel used vehicle retailer, saw its shares plunge over 20% following a disappointing quarterly update. The sell-off reflects weaker-than-expected results, softening demand, and growing unease about credit performance in its auto finance division. With interest rates remaining elevated, investors are questioning whether this downturn represents a structural flaw or a temporary cyclical setback.
Despite the headline decline, underlying metrics show resilience. Retail gross profit per used vehicle held steady at $2,216, while SG&A expenses saw modest reductions. The stock now trades at 52-week lows, presenting a potentially balanced risk-reward scenario for contrarian investors.
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