CarMax = MaxPuts

CarMax Q2 Earnings report was a complete disaster. The company was not even close to any analyst estimate. The report shows that both the consumer was weak, and the price of its vehicle sales were down. Now, with rates on the rise again (potentially 50 point fed rate increase) to try and slow the economy, it is becoming more expensive to finance purchases.
Inflation in general is a damper on consumers' budgets. Then factor in a much higher monthly payment on any financed debt, and it is no surprise as to why sales are slowing. We are in a recession, in my opinion and according to GDP. The rate hikes are just taking effect. As we can see with Carvana, used car sales are one of the last things the average regards are setting out for when they just bought a house for three times they can afford. so why risk it buying a used car?
$CarMax (KMX.US)$ $Carvana (CVNA.US)$