Why did Carvana stock drop about 14% today?

Shares fell after Gotham City Research alleged the company overstated 2023–2024 earnings by over $1 billion and raised concerns about related-party financing tied to Garcia-controlled firms. Carvana disputed the claims and reaffirmed its Feb. 18 earnings date. The headline risk sparked heavy selling and wider intraday ranges.

What exactly did Gotham City Research allege?

The report claims Carvana’s reported profitability over 2023–2024 overstates true economic earnings by more than $1 billion. It also questions financing and transactions linked to Garcia-controlled entities, suggesting possible risks to funding costs, availability, and disclosure quality. These points aim at the quality and sustainability of reported results.

How did Carvana respond, and when are earnings due?

Carvana called the report inaccurate, said its disclosures are proper, and kept its earnings schedule for Feb. 18. Management will likely address questions on securitizations, credit performance, and related-party dealings. Auditor sign-off and the 10-K will be key for confidence and could affect post-earnings volatility.

Is CVNA stock expensive after the selloff?

Even after the drop, valuation is elevated with a P/E near 93 and price-to-sales around 4.86. Sentiment is split: many analysts rate it Buy, while one composite rating shows C+ with a Sell view. Upside likely requires clean disclosures, steady credit metrics, and supportive guidance.

What levels and indicators are traders watching now?

Traders are watching the 50-day average near $418 and the lower Bollinger band around $411 as potential support zones. RSI at 62 suggests momentum remains positive, while a negative MACD histogram shows fading strength. ATR near 19.7 implies wide daily swings, so position sizing is important.

Global Market Insights

CVNA Stock Today: January 29 -14% on Gotham $1B Earnings Claim

ByDanny Kontos January 29, 2026January 29, 2026

Carvana stock slid about 14% on Jan. 29 after short seller Gotham City Research said the company overstated 2023–2024 earnings by over $1 billion and relied on financing linked to Garcia-controlled firms. Shares of CVNA swung sharply as Carvana called the report inaccurate and said its disclosures are proper. The company reaffirmed its Feb. 18 earnings date. We break down the claims, the company’s response, today’s trading setup, and what investors should track into the 10-K and results.