CarMax

He shares a car max getting wrecked after reporting earnings and revenue that miss analyst estimates the used ve For more let's bring in CNBC's P What did they say about t Melissa, there was not Really, when you look at the quarter, almost every key metric was poor. And even on the conference call, the CEO said month by month, the quarter got worse. Now they believe they're better positioned now, but here's the bottom line. They missed on the top on the bottom line. Vehicle sales in terms of the n And the loan loss provisions, they went up and they didn't go up just a little bit. They went up by 26% campaigner compared to the same quarter last year. Do the math here. They see that the loan quality in terms of delinquencies and defaults, it's deteriorating, especially for those written in 2022 and 2023. And as you take a look at shares of car max, keep in mind that auto delinquency rate right now for the industry, it's at 2. 54%. Now it's not as high as it was back in 08 and 09, but it has gone up substantially over the last couple of years, which raises questions about the strength of the cons Against that backdrop, you might be saying to yourself, terrible time to be invested in the auto industry. Well, if you've been invested in the suppliers, you've done quite nicely, especially if you go back to early April. Remember when the tariffs were announced? That's when auto supplier stocks just got hammered and people said, stay away from them. They have outperformed the Dow Jones Industrial Leverage, S&P 500. They've been a steady performer since then, in part because they've been able to pass along tariff costs to the automakers who have had to have lower margins. They haven't been able to say, no, you eat the cost. Instead, it's the suppliers saying to the automakers, you want these parts, you want these components, pay the bill. And that's what's happened here. That's why you take a look at Viscion, Magna, Borg Warner, Lear. All of these stocks have generally had a very nice performance since April, far better than a lot of other stocks, Melissa. But it just goes to show you, even though a lot of people are looking at the CarMax results and they're saying, man, t