After shares of Carmax (KMX) trended higher, the bullishness ended abruptly. The used car dealer reported quarterly results that scared investors. The firm characterized the second quarter as challenging.
CarMax posted a 6% drop in revenue to $6.59 billion. Analysts expected around $7.0 billion in revenue. Total unit sales fell by 5.4% to 199,729. AutoNation (AN) and Carvana (CVNA) fell in sympathy with the results.
Strategy (MSTR) dropped by 6.99% to close at $300.70. Its large reserve of Bitcoin (BTC-USD) is now a liability. BTC prices are now near correction territory, after peaking at $117,656 and closing below $109.500. Ethereum (ETH) is even weaker. Prices peaked at around $4,700 and closed at $3,926.
Jabil (JBL) shares are on sale today. The electronics manufacturer said that AI revenue will grow by 25% for the fiscal year. In Q4, it earned $3.29 in EPS. Revenue increased by 18.5% Y/Y to $8.25 billion. CEO Mike Dastoor said that “strength in AI-driven demand across capital equipment, data centers, and networking, combined with deliberate portfolio actions in Connected Living & Digital Commerce, more than offset pressures in Automotive and Renewables, highlighting the resilience of our diversified business model."
Jabil posted a strong quarter. The market is overreacting to the results. Still, the guidance is not as strong as shareholders want. Furthermore, the discrepancy between GAAP and non-GAAP results is nearly 50%.
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