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Published November 29, 2025
CarMax promised investors smooth roads ahead. The CEO said the company was gaining market share, driving double-digit growth, and predicting for “years to come” of strong results.
But under the hood, that success was built on a temporary rush — buyers scrambling to beat rumored car tariffs. Executives knew those numbers wouldn’t last.
By September 2025, the truth arrived. CarMax reported falling sales, shrinking profits, and called the quarter “challenging.” The stock crashed about 20% in one day and kept sliding. Investors were blindsided — the “growth story” they’d been sold was just a short-term boost.
Confidence evaporated. Shares sank. Investors are now speeding to join the lawsuit.