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Carvana Stock Price Drops 15% as Earnings Outlook Misses Forecasts

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As more Americans bristle at the idea of paying $50,000 on average for a new car, Carvana CVNA -7.36%decrease; down pointing triangle is capitalizing on the growing demand for used cars.

The online used-car retailer Wednesday reported record sales and profit in the second quarter. Carvana said it sold about 197,000 vehicles—up nearly 40% year-over-year—with a profit of $310 million, up from $183 million a year earlier. Revenue also rose 52% to $7.38 billion.

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