Carvana stock drops 11% after Hindenburg Research report raises financial concerns

Carvana's stock fell 11% today following a report from Hindenburg Research. The report accused the online car dealer of failing to disclose related-party transactions and manipulating accounting practices, raising concerns about its financial practices. Hindenburg claimed Carvana's recent recovery is misleading, highlighting $800 million in questionable loan sales. The report also noted that Carvana's stock trades at a much higher valuation than competitors like CarMax and AutoNation. In response, Carvana called the allegations "misleading and inaccurate." JPMorgan Chase suggested the company needs to improve transparency regarding its financial metrics, while maintaining an overweight rating on the stock.