2 Charts that should make KMX Investors Cry

September 25, 2024

If we asked you to pick a race horse based on the chart below, the decision would be pretty simple.

Carvana seems to have found a magic efficiency switch, powered by AI and technology that is placing it squarely above it's most recognized competition: CarMax.

The vehicle-vending machine up-and-comer is eating its much more established used-vehicle peer's lunch.

You can actually see the shift occuring in the minds of consumers in real-time on this chart, showcasing digital traffic for Carvana and CarMax over the last 3 years.

To be fair, if you look at the stock trajectory for CVNA vs. KMX, these charts shouldn't suprise you.

KMX is trading ~11% lower vs. 6 months ago and CVNA stock has nearly doubled in the same time frame.

With tilted expectations and a somewhat improving macro picture for consumers, are we willing to take a bet on KMX to the upside for this earnings event?

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