CarMax Slumps After Earnings and Pets at Home Has Huge Day
The used-car retailer’s stock price dropped 11% after investors reacted poorly to its quarterly earnings report. The company has struggled with lower inventories during the pandemic as fewer people have traded cars in.
What may be more concerning for the company is how successful competitor Carvana has been recently. Carvana’s stock price has more than doubled from the start of the year, and its share price shot up earlier this week when it projected a record quarter. Both CarMax’s double digit drop and Carvana’s 30% increase seem to be overdone, so follow these companies closely in the next few weeks to see if there is a slight correction.
Pets at Home
What do people forced to stay at home choose to spend their money on? Well, in the U.K. it’s clear the answer is their pets. The British pet supplies retailer saw its stock price rise nearly 28% yesterday after the company significantly raised its profit forecasts.
This quarter the company has seen double digit growth, a feat quite rare for brick and mortar stores during the pandemic. Dog’s may be man’s best friend, but Pets at Home was an investor’s best friend for anyone holding it yesterday.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.