Carmax tumbles on worse-than-expected earnings and sinking used car sales

Shares of CarMax sank more than 13% in premarket trading following the company’s second-quarter earnings report.

The used vehicle retailer posted adjusted earnings per share of $0.64, missing Wall Street estimates of $1.04 per share by 38%. CarMax’s sales came in at $6.59 billion, a 6% drop from the same period last year and also below the analyst consensus of $7.01 billion.

CarMax sold 5.4% fewer used vehicles to retail customers, with retail unit sales coming in at 199,729. Its average selling price for the vehicles dipped 1% to $25,993.

CarMax’s sales are still ahead of rival Carvana, though the latter has been working diligently to close the gap. Despite selling fewer cars, Carvana’s market cap is more than 10x CarMax’s. CarMax’s report also weighed on Carvana in the premarket Thursday, with the stock down more than 3%.

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Matt Phillips2h

Oklo dives after insider sale

Oklo dove Thursday after an SEC filing showed company director Michael Klein sold some $6.7 million in stock in transactions that, importantly, were not part of a pre-set insider sales plan.

Wall Street analysts forecast that the nuclear power startup will make losses for years to come. But the company’s ties to OpenAI CEO Sam Altman, who served as Oklo’s chairman until April, have helped make the stock a favorite of retail traders and a popular momentum play.

Even after today’s stumble, it’s up more than 400% this year and nearly 1,300% over the past 12 months.

Luke Kawa

Quantum stocks sputter after nearly doubling thanks to the US government calling the technology an R&D priority

The happiest words for an emergent technology: “I’m from the government and I’m here to help.”

Scholz Inaugurates Europe's First IBM Quantum Data Center

Stitch Fix sinks as Wall Street digests Q4 results

Stitch Fix topped the Street’s expectations for the quarter, but tepid guidance and declining customer numbers disappointed investors.

Nia Warfield3h

Tom Jones6h

Hertz is up on refinancing efforts, announcing an upsized $375 million senior notes offering

Rental car behemoth Hertz is up about 6% from yesterday’s close in early trading, after the company announced an upsized $375 million exchangeable senior notes offering, an increase from the previously announced offering size of $250 million.

The indebted vehicle hire company, which posted its seventh quarterly loss in a row last month, said:

“Hertz Corp. intends to use $300 million of the net proceeds from the issuance of the Notes to fund the partial redemption or repurchase of its outstanding Senior Notes due 2026 on or before December 31, 2025 and to use the remaining net proceeds for general corporate purposes, which may include the repayment of outstanding indebtedness.”

Hertz shares roared as much as 19.7% after-hours yesterday on its initial announcement of the notes offering.

Hyunsoo Rim6h

Intel rises as the company seeks Apple as next big backer amid turnaround push, per Bloomberg report

Not content with just having the US government and Nvidia as new shareholders, Intel has approached Apple about a possible investment as it seeks to revive its business, according to a report from Bloomberg.

The two companies have floated ideas on working more closely, though the discussions are “early-stage" and may not lead to a deal. Intel has also reached out to other companies about potential partnerships.

The move comes after a wave of equity investments in the chipmaker: last week, Nvidia committed $5 billion to acquire a stake in Intel and codevelop data center and PC chips. In August, SoftBank bought $2 billion worth of Intel shares, and the US government secured an $8.9 billion (~10%) stake to support domestic chip production.

In recent years, Intel has been losing ground to rivals, with sales peaking at $77.9 billion in 2020 and declining since. The company has also scaled back plans for new chip factories and is cutting about 22% of its workforce by the end of this year.

For Apple, the talk revives a long relationship with Intel: Apple sourced its Mac processors from Intel since 2006 before switching to its own in-house silicon in 2020.

Shares of Intel jumped nearly 4% in premarket trading Thursday, and are up 42% year to date. Apple is down less than 1% premarket.

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