CVNA's fundamentals remain weak with high leverage and declining sales, but oversold technicals suggest a potential short-term bounce. The stock's valuation is still stretched relative to peers, warranting caution.

Market sentiment is mixed as CVNA underperforms broader indices, but CPI-driven auto sector interest could provide temporary support. Investor focus on CarMax's struggles may spill over, limiting upside momentum.

Long-term risks persist due to Carvana's debt load and competitive pressures, though recent cost-cutting efforts may stabilize operations. The turnaround narrative lacks conviction, making this a high-risk hold.

Technical signals show CVNA trading below key moving averages with weak volume, reinforcing downtrend confirmation. Relative strength vs. peers remains negative, suggesting further consolidation ahead.