Wedbush downgrades Carvana to Neutral

Yahoo Finance Live anchors discuss shares of Carvana after a Wedbush analyst downgrades the stock to Neutral from Outperform.

Video Transcript

BRAD SMITH: Also watching closely here today, shares of Carvana. They are moving on the day up by about 2%, we'll round that off to after Wedbush downgraded the stock to neutral from outperform and slashed their price target from $50 to $15 here.

Now, in the used car landscape, of course, there is this massive shift of and the inventory concerns, particularly, because even at the prices that used cars had skyrocketed up to, it's a larger question of where consumers are starting to push back on some of those prices and where Carvana, CarMax, where they'll actually be able to move some of that inventory off the lots that they've paid so much to be able to bring on as well.

BRIAN SOZZI: Yeah, a $50 price target? Wow, this stock has come way down.

BRAD SMITH: Big time.

BRIAN SOZZI: From a consumer standpoint, I've bought two cars off Carvana. I think the consumer experience is very, very impressive. But of course, you have to separate the consumer experience from the financials. And I understand this downgrade makes a lot of sense. We've seen used car prices start to roll over, consumer spending under pressure here a little bit so I get it.

JULIE HYMAN: Yeah, makes sense.

BRIAN SOZZI: All right.