Carvana Co (CVNA) shares slid on Wednesday, caught between the company's ambitious expansion plans and lingering questions from short sellers about its financial reporting.

Pushing Forward With Same-Day Service

The online used-car retailer announced on Feb. 3 that it's bringing same-day vehicle delivery to Oregon's Eugene metro area. Eligible customers can now get their cars within hours after checkout, thanks to what Hearns described as the company's robust logistics network.

This isn't exactly new territory for Carvana. The company first rolled out same-day delivery in Arizona and has since expanded the service across select markets in more than 20 states. It's a clear bet that speed matters in the used-car business—though the market seems more focused on what's happening behind the scenes.

The Short Seller Shadow

While Carvana expands its delivery footprint, Gotham City Research continues to cast doubt on the company's numbers. The short seller accused the company of inflating earnings across multiple reporting periods, alleging that Carvana overstated profits in 2023 and 2024 by more than $1 billion, according to reports from late January.

Carvana's response was swift and direct. In an emailed statement, the company dismissed the allegations, calling the report "inaccurate and intentionally misleading." But the cloud hasn't lifted, and investors are clearly taking notice.

What the Charts Say

The technical picture for Carvana stock is about as mixed as you'd expect. Shares are trading 7.9% below their 20-day simple moving average and 2.5% above their 100-day SMA—suggesting short-term weakness but some longer-term strength. Over the past 12 months, the stock has climbed 44.46% and sits closer to its 52-week highs than lows, which points to a generally positive trend.

The momentum indicators tell a similar story of conflict. The RSI sits at 41.74, firmly in neutral territory, while the MACD has crossed below its signal line, indicating bearish pressure. It's the kind of setup that doesn't give traders much conviction either way.

• Key Resistance: $401.00
• Key Support: $391.00

Earnings on the Horizon

Investors won't have to wait long for more clarity. Carvana is scheduled to report earnings on Feb. 18, 2026, and expectations are running high.

• EPS Estimate: $1.11 (Up from 56 cents year-over-year)
• Revenue Estimate: $5.23 billion (Up from $3.55 billion year-over-year)
• Valuation: P/E of 89.0x (Indicating a premium valuation)

Analyst Consensus & Recent Moves: Despite the controversy, Wall Street analysts maintain a Buy rating on the stock with an average price forecast of $451.83. Recent analyst activity has been decidedly bullish:

• JP Morgan: Overweight (Raises target to $510.00) (Jan. 28)
• Wells Fargo: Overweight (Raises target to $525.00) (Jan. 27)
• Barclays: Overweight (Raises target to $530.00) (Jan. 21)

The Scorecard

Looking at Carvana's fundamental positioning reveals a company with explosive growth potential trading at nosebleed valuations:

• Value: Weak (Score: 11.49) — Trading at a steep premium relative to peers
• Growth: Bullish (Score: 98.3) — Strong growth potential indicated by high growth metrics
• Momentum: Bullish (Score: 80.31) — Stock is outperforming the broader market

CVNA Price Action: Carvana shares were down 5.65% at $369.56 at the time of publication on Wednesday.