Chapter 1: What is the main topic discussed in this episode?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning. Today is Thursday, February 19th. I'm Julie Morgan. Carvana sold more cars than Wall Street expected in the fourth quarter, but concerns over the company's profitability have pushed the stock into the red this morning. Carvana is down 16% in pre-market action.
The used car marketplace experienced a 58% surge in revenue. On a per-unit basis, retail vehicle sales were up 43%, while wholesale increased 66%. However, when you break down the numbers further, it shows a $244 decline in gross profit per vehicle and an 18.2% decline in wholesale marketplace gross profit.
The company's profitability gave a mixed picture, as adjusted EBITDA increased to $511 million but missed the $539 million estimate. while on a per-share basis, adjusted profits surged to $4.22 per share from $0.56 per share, although this was attributed to one-time charges and so is not comparable to $1.12 estimates.
The company did not issue sales guidance for the full year, but said it continues to expect to sell 3 million cars between 2030 and 2035. DoorDash is up 13% in pre-market trading. Shares surged as strong order growth and upbeat guidance outweighed a Q4 top and bottom line miss.
Chapter 2: What led to Carvana's stock drop despite higher sales?
Orders climbed 32% to $903 million and gross order value jumped 39% to $29.7 billion, both above expectations. The Q1 outlook for GOV and EBITDA came in strong. $31 to $31.8 billion and $675 to $775 million, respectively. Investors look past softer margins and heavy investment spending, choosing to focus on demand momentum and growth visibility.
Now we have an update to a story we brought you last week here on Wall Street Breakfast. Moderna closed 6% higher on Wednesday after the U.S. FDA accepted the company's marketing application for its messenger RNA-based shot mRNA-1010. reversing an earlier stance to refuse its review.
In a press release, the biotech said that the agency has also assigned August 5th of this year as the target action date in connection with its biologics license application for mRNA-1010. Shares of Moderna came under pressure last week after the FDA issued a refusal to file letter indicating that its biologics unit, which regulates vaccines, would not review the BLA.
The company has submitted an amended BLA after proposing a revised regulatory path for the shot. during a type A meeting with the FDA. Changes include plans to seek an age-dependent regulatory pathway and a post-marketing requirement to conduct an additional trial in older adults. Moderna expects to launch mRNA 1010 in the U.S. for adults age 50 and older for the 2026-2027 flu season.
Now for a look at a few other articles that are trending. GameStop's Ryan Cohen takes on the hollow men of corporate boardrooms. A shift away from EVs continues to cost Avis' budget. And Figma targets 30% revenue growth for 2026 as AI adoption accelerates. Next Generation Networking and Security On Wall Street at this early hour, Dow, S&P and Nasdaq futures are in the red.
Crude oil is up 1% at $65 a barrel. Bitcoin is up 0.6% at $66,000. Gold is up 0.2% at $49.85. The FTSE 100 is down 0.8% and the same is true for the DAX. Chinese and Hong Kong markets were closed today for the Lunar New Year holiday. We mentioned Figma earlier in an article that is trending. Figma is also on our biggest movers list.
FIG is up 15% after reporting strong Q4 results and upbeat guidance. And a couple of items on today's economic calendar at 8.30 a.m., jobless claims and at 10 a.m., leading indicators. That's it for today's Wall Street Breakfast. Thanks for listening. To take full advantage of Seeking Alpha with coverage on significant stocks and ETFs, become a premium subscriber.
Check out seekingalpha.com slash subscriptions. I'm your host, Julie Morgan. Go out and make it a great day.
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