Carvana (CVNA) plunged 14.98% in five days due to insider selling and fraud allegations on Reddit, dropping sentiment scores from 18 to 10-12. Carvana trades at 78x earnings, compared to CarMax at 15x, both down over 12% this week amid sector pressure.
Carvana’s executive team sold shares with CFO Mark Jenkins unloading 12,058 shares and COO Benjamin Huston selling 10,628 shares. Reddit sentiment turned bearish with fraud allegations gaining traction, leading to a drop in sentiment scores from 18 to 10-12. CarMax, Carvana’s competitor, also fell 12.19% this week, facing sector-wide pressure.
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