S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Investing.com - Benchmark maintained its Buy rating and $80.00 price target on Sonic Automotive (NYSE:SAH) as Amazon (NASDAQ:AMZN) continues expanding its automotive marketplace presence.
Amazon launched Amazon Autos this summer, partnering with Hyundai (OTC:HYMTF) to enable customers to purchase new vehicles through its platform. While not selling cars directly, Amazon acts as a listing agent facilitating transactions between buyers and participating dealerships across approximately 70 markets.
The e-commerce giant has also entered the used car space, recently announcing a partnership with Hertz (NASDAQ:HTZ). Customers within 75 miles of Dallas, Houston, Los Angeles, and Seattle can now search for used vehicles on Amazon.com, with plans to expand to 45 locations nationwide.
Hertz shares jumped over 6% following the partnership announcement, while franchised dealers including Sonic Automotive, Penske Automotive Group (NYSE:PAG), and Lithia Motors (NYSE:LAD) remained flat in trading.
Digital used car retailers like CarMax (NYSE:KMX) and Carvana (NYSE:CVNA) saw low single-digit percentage declines as Amazon’s automotive marketplace expansion potentially threatens their business models. Despite market concerns, Carvana maintains strong fundamentals with 39.48% revenue growth and a substantial market cap of $73.89 billion. According to InvestingPro analysis, Carvana’s stock has delivered an impressive 121.59% return over the past year, though it currently trades at a relatively high P/E ratio of 79.06. InvestingPro offers 16 additional investment tips and comprehensive analysis for Carvana, available through their detailed Pro Research Report.
In other recent news, Carvana has reported strong second-quarter 2025 results, which have led several analyst firms to raise their stock price targets. JPMorgan noted that Carvana’s adjusted EBITDA for the quarter was $601 million, surpassing both its own estimate of $530 million and the Bloomberg consensus of $551 million. Needham raised its price target to $500, citing Carvana as a leading profitable growth story with a unique model in a fragmented industry. BTIG also increased its price target to $450, highlighting the company’s strong retail gross profit per unit and operational efficiency. JMP Securities raised its target to $460, acknowledging Carvana’s revenue and EBITDA exceeding consensus expectations by 6% and 9%, respectively. DA Davidson adjusted its price target to $380 while maintaining a Neutral rating, recognizing Carvana’s year-over-year growth in used vehicle units. These developments reflect a positive reception from analysts regarding Carvana’s recent performance and potential for future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.