Carvana Shares Are Falling Following The Company's First Acquisition

Used car company Carvana Co. has made its first acquisition with the purchase of rival Carlypso, a data marketplace focused on vehicles. Carlypso's technology is able to analyze and price cars without seeing them in person, which could be of use to Carvana, which sells cars online. Carvana did not disclose financial terms of the deal. Chris Coleman and Nicky Hinrichsen, co-founders of Carlypso, have taken leadership roles at Carvana, according to the press release. Shares of Carvana were sinking 6% Wednesday, following news of the acquisition Tuesday as well as Carvana's second-quarter earnings beat. Carvana reported an adjusted EPS of 28 cents and revenue of $209.4 million, compared with EPS expectations of a loss of 30 cents and revenue expectations of $198.8 million, according to analysts surveyed by FactSet.