U.S. Markets Closed Wednesday with Mixed Results, Driven by Seagate Technology's Gains and Carvana's Decline
- U.S. Stock Performance: U.S. stock indexes had a mixed performance on Wednesday, with some indexes showing slight gains while others remained unchanged.
- Index Movements: The S&P 500 added 0.17%, the Dow Jones increased by 0.02%, and the Nasdaq was flat.
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- Stock Price Plunge: Carvana's shares fell over 20% during trading on January 28, primarily due to allegations from a Gotham City Research report that its profitability relies on undisclosed related-party transactions, leading to diminished investor confidence and potential further sell-offs.
- Investigation Launched: Block & Leviton is investigating whether Carvana violated securities laws and plans to file actions to recover losses for affected investors, demonstrating a commitment to protecting investor rights through legal avenues.
- Financial Issues Exposed: The report claims that DriveTime burned over $1 billion in cash while leveraging 20 to 40 times EBITDA to support Carvana's earnings, raising concerns about the transparency of such financial maneuvers and potentially attracting regulatory scrutiny.
- Whistleblower Incentives: Block & Leviton encourages whistleblowers with non-public information about Carvana to assist in the investigation, offering rewards of up to 30% of any successful recovery from the SEC, aiming to attract more insiders to disclose potential violations.
- Investigation Launched: Kirby McInerney LLP is investigating potential violations of federal securities laws by Carvana and its senior management, indicating serious concerns regarding the company's compliance practices.
- Profitability Concerns: A report by Gotham City Research alleges that Carvana's reported profitability is based on undisclosed related-party transactions with DriveTime and Bridgecrest, which may undermine investor confidence in the company's financial transparency.
- Stock Price Plunge: Following the report's release, Carvana's stock price fell by $67.68, or approximately 14.2%, from $477.72 on January 27 to $410.04 on January 28, reflecting market fears about the company's financial health.
- Legal Risks: Although no lawsuit has been filed yet, the ongoing investigation could lead to future legal actions, prompting investors to remain vigilant about their rights and potential legal implications.
- Securities Claims Investigation: Rosen Law Firm has announced an investigation into potential securities claims against Carvana Co. due to allegations of issuing materially misleading business information, potentially entitling shareholders to compensation.
- Stock Price Impact: On January 28, 2026, Carvana's stock fell 14% following a short-seller report alleging that its earnings were 'far more dependent' on private companies linked to its controlling shareholders, raising concerns about financial transparency.
- Class Action Preparation: The firm is preparing a class action to recover investor losses, allowing affected shareholders to participate without any out-of-pocket costs, which encourages broader participation from impacted investors.
- Firm's Track Record: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and successful track record in the securities litigation space.
- Securities Fraud Investigation: Rosen Law Firm has announced an investigation into Carvana Co. due to potential misleading business information issued to investors, which may lead to securities claims for shareholders.
- Stock Price Plunge: On January 28, 2026, Carvana's stock fell 14% following a short-seller report alleging that the company's earnings were more dependent on private companies linked to its controlling shareholders, raising significant investor concerns.
- Class Action Preparation: The Rosen Law Firm is preparing a class action to seek compensation for investors who suffered losses due to Carvana's misleading information, with no out-of-pocket fees required from investors.
- Firm's Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its strong capabilities and influence in the field.
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Carvana and its executives have engaged in securities fraud or other unlawful business practices, indicating significant legal risks that could undermine investor confidence and stock performance.
- Earnings Overstatement Allegations: Gotham City Research LLC issued a report on January 28, 2026, claiming that Carvana's earnings for 2023-2024 are overstated by over $1 billion, revealing a lack of financial transparency that could lead to investor losses.
- Significant Stock Price Drop: Following the report's release, Carvana's stock plummeted by $67.68, a 14.17% decline, closing at $410.04 per share, reflecting severe market concerns regarding the company's financial health.
- Potential Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, may initiate a class action against Carvana, and if the investigation confirms wrongdoing, it could have substantial repercussions on the company's future operations and reputation.

Hertz's Stock Performance: Hertz Global Holdings has seen a significant decline in its stock value, with shares down over 79% in the past five years, including a nearly 43% loss since reaching a one-year high in April 2025.
Partnership with Amazon: The company has entered a strategic partnership with Amazon to sell used cars online, aiming to improve sales and provide customers with a more convenient purchasing experience.
Financial Challenges: Hertz has faced substantial financial difficulties, including a massive net loss in 2024 and increasing depreciation costs, which have raised concerns among investors regarding the company's long-term viability.
Analyst Ratings: While Amazon has received a favorable "Buy" rating from analysts, Hertz has been assigned a "Reduce" rating, reflecting a lack of confidence in its recovery and growth potential compared to its competitors.










