Brown Forman Downgraded to Sell, Stock Drops 9.64%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 28 2025
0mins
Should l Buy CVNA?
Source: Benzinga
- Downgrade Impact: Citigroup analyst Filippo Falorni downgraded Brown Forman from Neutral to Sell, lowering the price target from $30 to $27, which contributed to a 9.64% drop in its stock this week, reflecting market concerns about its future performance.
- Carvana Rating Maintained: Despite a 5.73% decline in Carvana's stock this week, Evercore ISI Group analyst Michael Montani maintained an In-Line rating while raising the price target from $420 to $425, indicating confidence in its long-term potential.
- Stellantis Policy Opposition: Stellantis's stock fell 4.77% this week as the company strongly opposed the EU's revised vehicle emissions plan, warning that it could undermine growth incentives and impact its future market performance.
- Starbucks Union Protests: Starbucks's stock decreased by 4.68% this week due to protests by the Starbucks Workers United union at the company's headquarters, which may negatively affect brand image and employee morale.
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Analyst Views on CVNA
Wall Street analysts forecast CVNA stock price to rise
18 Analyst Rating
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 342.870
Low
395.00
Averages
497.94
High
550.00
Current: 342.870
Low
395.00
Averages
497.94
High
550.00
About CVNA
Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. The Company primarily acquires used vehicle inventory directly from customers, used car auctions, and wholesale used vehicle suppliers, including retail marketplace partners. Once it acquires a vehicle, the Company leverages its in-house logistics network or a vendor to transport the vehicle to one of its inspection and reconditioning centers (IRC) or auction locations with reconditioning capabilities, at which point the vehicle enters its inventory management system. It offers a mobile-optimized Website, where prospective retail car buyers can immediately begin browsing, researching, filtering, and identifying their vehicle of choice, where it offers an annotated virtual vehicle tour, which includes a 360-degree view of the interior and exterior of the actual vehicle. The Company also offers integrated financing using its loan origination platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Carvana Faces Challenges in Used Car Market
- Rising Financing Costs: Used car loan rates have surged to between 10% and 12%, compared to 6% to 7% for new cars, creating higher monthly payment pressures for consumers and undermining Carvana's market appeal.
- Sales Decline Forecast: Used retail sales are expected to drop by 0.7% in 2026 to 20.3 million units, primarily due to reduced new car production and weak electric vehicle demand, further exacerbating challenges for Carvana.
- Insider Selling Warning: CEO Ernest Garcia III has sold over $1.4 billion in shares since April 2024, including more than $500 million in August 2025, raising concerns about corporate governance and future prospects among investors.
- Financial Transparency Issues: Gotham City Research accused Carvana of hiding over $1 billion in expenses through related-party transactions, leading to a 20% drop in stock price, indicating significant risks in financial management that could affect investor confidence.
See More
Latest Ratings and Outlook from Wall Street
- Nvidia Rating Reaffirmed: Citi reiterates Nvidia as a buy, anticipating the stock will outperform in the second half of 2026 as demand visibility extends into 2027, recommending investors add to their positions given attractive valuations.
- Toast Upgraded to Outperform: Bernstein upgrades Toast from market perform to outperform, noting that despite a 26% year-to-date decline, the restaurant tech company is positioned as an AI winner, suggesting a positive outlook.
- Carvana Maintains Overweight Rating: JPMorgan reiterates Carvana as overweight, asserting that fears surrounding AI are overblown, with the company's vertically integrated infrastructure providing a unique competitive moat to leverage AI effectively.
- Melco Upgraded to Buy: UBS upgrades Melco from neutral to buy, highlighting that despite a 27% year-to-date decline, enhancements at its City of Dreams in Macau are expected to offset margin pressures and branding fee increases in 2026.
See More
Market Movers: Norwegian Cruise Line, Masimo, Paramount Skydance, Infosys, ZIM, and Others
- Market Overview: Stock futures experienced a decline on Tuesday.
- Investor Behavior: Investors are continuing to sell off tech stocks.
- Trend Continuation: The selloff in tech stocks is part of a recent trend.
- Market Sentiment: Overall investor sentiment appears to be negative.
See More
Carvana Faces Challenges Ahead of Earnings Report as Stock Falls 27%
- Stock Decline: Carvana's stock has fallen approximately 27% from its January peak of $485 to around $347, indicating market concerns about its future prospects, particularly amid weakening demand.
- Financial Performance: Despite posting record revenue of $5.65 billion in Q3 2025, a 54.5% year-over-year increase, and delivering 156,000 vehicles, confidence in Carvana's sustained growth is waning as used car demand softens.
- Rising Financing Costs: Used car loan rates are running between 10% and 12%, compared to 6% to 7% for new cars, putting pressure on consumers' monthly payments and potentially impacting Carvana's sales potential.
- Insider Selling Warning: The CEO has sold over $1.4 billion in shares since April 2024, including more than $500 million in August 2025, raising concerns about insider confidence in the company's future and increasing investor risk perceptions.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Carvana Faces Challenges in Used Car Market
- Rising Financing Costs: Used car loan rates have surged to between 10% and 12%, compared to 6% to 7% for new cars, creating higher monthly payment pressures for consumers and undermining Carvana's market appeal.
- Sales Decline Forecast: Used retail sales are expected to drop by 0.7% in 2026 to 20.3 million units, primarily due to reduced new car production and weak electric vehicle demand, further exacerbating challenges for Carvana.
- Insider Selling Warning: CEO Ernest Garcia III has sold over $1.4 billion in shares since April 2024, including more than $500 million in August 2025, raising concerns about corporate governance and future prospects among investors.
- Financial Transparency Issues: Gotham City Research accused Carvana of hiding over $1 billion in expenses through related-party transactions, leading to a 20% drop in stock price, indicating significant risks in financial management that could affect investor confidence.
See More
Latest Ratings and Outlook from Wall Street
- Nvidia Rating Reaffirmed: Citi reiterates Nvidia as a buy, anticipating the stock will outperform in the second half of 2026 as demand visibility extends into 2027, recommending investors add to their positions given attractive valuations.
- Toast Upgraded to Outperform: Bernstein upgrades Toast from market perform to outperform, noting that despite a 26% year-to-date decline, the restaurant tech company is positioned as an AI winner, suggesting a positive outlook.
- Carvana Maintains Overweight Rating: JPMorgan reiterates Carvana as overweight, asserting that fears surrounding AI are overblown, with the company's vertically integrated infrastructure providing a unique competitive moat to leverage AI effectively.
- Melco Upgraded to Buy: UBS upgrades Melco from neutral to buy, highlighting that despite a 27% year-to-date decline, enhancements at its City of Dreams in Macau are expected to offset margin pressures and branding fee increases in 2026.
See More
Market Movers: Norwegian Cruise Line, Masimo, Paramount Skydance, Infosys, ZIM, and Others
- Market Overview: Stock futures experienced a decline on Tuesday.
- Investor Behavior: Investors are continuing to sell off tech stocks.
- Trend Continuation: The selloff in tech stocks is part of a recent trend.
- Market Sentiment: Overall investor sentiment appears to be negative.
See More
Carvana Faces Challenges Ahead of Earnings Report as Stock Falls 27%
- Stock Decline: Carvana's stock has fallen approximately 27% from its January peak of $485 to around $347, indicating market concerns about its future prospects, particularly amid weakening demand.
- Financial Performance: Despite posting record revenue of $5.65 billion in Q3 2025, a 54.5% year-over-year increase, and delivering 156,000 vehicles, confidence in Carvana's sustained growth is waning as used car demand softens.
- Rising Financing Costs: Used car loan rates are running between 10% and 12%, compared to 6% to 7% for new cars, putting pressure on consumers' monthly payments and potentially impacting Carvana's sales potential.
- Insider Selling Warning: The CEO has sold over $1.4 billion in shares since April 2024, including more than $500 million in August 2025, raising concerns about insider confidence in the company's future and increasing investor risk perceptions.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
