This Single Factor Is Holding Back Carvana’s Disruptive Edge

Despite Carvana's impressive Q1 2026 earnings with record unit sales and operational improvements, the stock has declined ~15% since the report. The primary headwind is restrictive Federal Reserve monetary policy keeping interest rates high, which disproportionately impacts Carvana's lower-FICO-score customer base who are more dependent on financing. While analysts remain bullish with a $93.14 price target, technical indicators show weakness and the stock remains tethered to macro conditions rather than company execution.