Carvana (CVNA) shares are taking a meaningful hit on Thursday as management's muted future guidance overshadows an otherwise record-breaking Q2 financial release. CVNA posted a 52% year-over-year increase in revenue to $7.38 billion on a record 197,325 retail units sold and $513 million in net income. Investors are bailing on CVNA shares also because the firm's adjusted EBITDA margin contracted by 200 bps in the second quarter to 10.4%, while total non-GAAP gross profit per unit (GPU) fell $455. At 3.5x sales, CVNA is undervalued relative to its infrastructure advantages, proprietary AI-driven logistics, and an expanding nationwide network, he told clients. While not nearly as positive as Needham, other Wall Street firms have not thrown in the towel on CVNA stock either.