Why did CVNA stock drop about 20% today?

The selloff followed an adjusted EBITDA miss of USD 511 million versus USD 536 million expected and a lighter 10.1% margin versus 10.4% estimates. Management also highlighted higher reconditioning costs into Q1 and kept near-term guidance limited, which hurt confidence in margin recovery despite solid revenue and unit growth.

Is CVNA stock a buy after this pullback?

It depends on your risk tolerance and time frame. Valuation remains rich, so we would want evidence that reconditioning costs ease and unit margins improve. Consider scaling entries, using strict stops, and watching margin cadence. A clearer Q1 outlook could justify adding, but weak cost trends argue for patience.

What should Canadian investors consider before buying CVNA?

Factor currency risk, since returns are in USD while your base may be CAD. Check U.S. trading access and fees with your broker. Expect wider swings, as ATR and volatility are elevated. Finally, focus on margins, not just units, because valuation assumes ongoing profitability gains. Position sizing matters most here.

What key levels and indicators matter now?

Traders are watching the lower Bollinger band near USD 326.75 and momentum signals with RSI around 34.9. MACD remains negative, and ADX near 38 suggests a firm downtrend. ATR about 28 implies larger daily ranges. A sustained rebound needs improving momentum plus clearer guidance on Q1 margins.

Global Market Insights

CVNA Stock Today: February 18 — 20% Slide After EBITDA Miss, Vague Outlook

ByHuzaifa Zahoor February 19, 2026February 19, 2026

CVNA stock slid about 20% on February 18 after Carvana missed adjusted EBITDA and kept near‑term guidance vague. The company reported adjusted EBITDA of USD 511 million versus USD 536 million expected, with margin at 10.1% versus 10.4% estimates. Management also flagged higher reconditioning costs into Q1. For Canadian investors, this move raises questions about profit trajectory, cost control, and volatility in a U.S.-listed name where FX swings can add another layer to returns.