CarMax Inc. (KMX) dropped 17% on Thursday due to negative catalysts and missed analyst estimates.

From Yahoo Finance: 2025-04-11 05:46:00

On Thursday, the stock market saw a bloodbath session as investors sold off positions following President Trump’s announcement of increased tariffs on Chinese goods to 145 percent. The Nasdaq dropped 4.31%, the S&P 500 fell 3.46%, and the Dow Jones was down 2.50%.

CarMax Inc. (NYSE:KMX) tumbled by 17% to $66.45 on Thursday due to negative catalysts affecting investor sentiment, missed analyst estimates, and the removal of long-term growth forecasts. Despite this, CEO Bill Nash clarified that the outlook isn’t pessimistic, and the company reported 7% revenue growth in the fourth quarter of fiscal year 2025.

KMX reported earnings per share of $0.58, below analysts’ $0.65 forecast, alongside a 25% increase in digital sales year-on-year. Looking ahead to 2026, the company plans to expand stores and reconditioning centers into new locations. While KMX ranks 2nd on the list of heavily sold-down stocks, the potential for AI stocks to deliver higher returns in a shorter time frame is emphasized.



Read more at Yahoo Finance: Why CarMax Inc. (KMX) Went Down On Thursday?