CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. The company generates revenue through dealer subscription fees, advertising from auto manufacturers and other brand advertisers, and partnerships with financing services companies. Its marketplace connects a large audience of car shoppers with an extensive dealer network, anchoring an integrated suite of products. These include Digital Deal, Dealership Mode, Sell My Car / Top Dealer Offers, IMV Scan, and PriceVantage, as well as advertiser products, Autolist, and PistonHeads. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. Founded in 2005, it is headquartered in Boston, Massachusetts.
LendingTree Shares Fall 7.8% as Meta's Muse Threatens Lead Generation
LendingTree shares fell 7.8% to close at $24.02 after the Wall Street Journal reported that Meta's Muse can buy goods online, respond to emails, and complete other tasks a user authorizes, threatening the lead-generation model that pays LendingTree when consumers visit its site to request a loan. Barron's Anita Hamilton wrote that the same dynamic is already hitting travel sites because Muse can book flights and places to stay, with Expedia, Booking Holdings, Tripadvisor, and Airbnb all falling. Bloomberg Intelligence analysts Mandeep Singh and William Tong wrote that if agents take 5% to 10% of travel, ride-hailing, and delivery business, the combined revenue loss could exceed $5 billion, Barron's reported, though that figure is a scenario for travel and delivery rather than a measured loss at either company. The move extends a broader selloff across lead-generation and marketplace names including EverQuote, CarGurus, Cars.com, Instacart, Expedia, and Booking Holdings, whose models depend on shoppers still arriving on a site where ads and commissions are charged. LendingTree is down 53.2% since the beginning of the year and trades 65.8% below its 52-week high of $70.56 from September 2025.
TREE · Competition · Negative Meta's Muse threatens the lead-generation model that pays LendingTree when consumers visit its site to request a loan, sending shares down 7.8%.
ABNB · Competition · Negative Meta's Muse can book flights and stays, threatening Airbnb's marketplace model as travel sites fall.
BKNG · Competition · Negative Meta's Muse can book flights and places to stay, pressuring Booking Holdings' booking model.
EXPE · Competition · Negative Meta's Muse can book flights and stays, threatening Expedia's marketplace model; Expedia fell in the broader lead-generation selloff.
TRIP · Competition · Negative Tripadvisor fell as Meta's Muse can book flights and places to stay, undermining its marketplace/lead-generation model.
CARG · Competition · Negative CarGurus is caught in the broader selloff of lead-generation and marketplace names threatened by Meta's Muse.
Etsy, CarGurus, Cars.com, EverQuote Slide on Meta Muse AI Disintermediation Fears
Shares of online marketplace companies Etsy, CarGurus, Cars.com, and EverQuote fell in the afternoon session as Wall Street fears mounted over the disintermediation of direct user gateways following Meta Platforms' adoption of its new AI agent, Muse. Etsy dropped 4.1%, CarGurus fell 5.1%, Cars.com declined 5.7%, and EverQuote slid 8.2%. CNBC reported, citing a Goldman Sachs trading desk note to clients, that as artificial intelligence assistants improve at price comparison, travel booking, and customer service interactions, industries relying on recurring bills, negotiable pricing, and add-ons could come under pressure. The Goldman Sachs note grouped Netflix, Expedia, and Booking Holdings into a "consumer inertia" risk basket, which has tumbled more than 7% over the past six trading days. EverQuote, now at $18.01 per share, is down 29.3% since the start of the year and trades 35.4% below its 52-week high of $27.87 from December 2025.
CARG · Competition · Negative Meta's Muse AI agent could disintermediate CarGurus' direct user gateway for car price comparison, pressuring its marketplace model.
CARS · Competition · Negative Meta's Muse AI agent threatens Cars.com's direct user gateway as AI assistants improve at price comparison.
ETSY · Competition · Negative Etsy shares fell on fears Meta's Muse AI disintermediates direct user gateways for online marketplaces.
EVER · Competition · Negative EverQuote slid 8.2% on disintermediation fears from Meta's Muse AI agent handling price comparison and customer service.
CarGurus reported second-quarter revenue of $250.97 million, up 7.2% year-over-year, while earnings per share came in at $0.66 compared to $0.57 a year ago. Revenue exceeded the Zacks Consensus Estimate of $249.43 million by 0.62%, and EPS beat the consensus of $0.62 by 6.45%. The company's total paying dealers reached 34,629, slightly below the analyst estimate of 34,937, with U.S. paying dealers at 26,151 versus an expected 26,297 and international paying dealers at 8,478 versus an expected 8,640. Consolidated quarterly average revenue per subscribing dealer was $6,771, above the $6,756.05 estimate, driven by U.S. QARSD of $8,134 versus an $8,089.57 estimate and international QARSD of $2,568 versus a $2,533.41 estimate.
StockStory Highlights CarGurus and EXL as Small-Cap Stocks to Watch, Flags Resideo as Underwhelming
StockStory identifies CarGurus and EXL as two small-cap stocks with strong potential, while naming Resideo as one to avoid. CarGurus, a digital auto marketplace, boasts an 88.4% gross margin and 32.5% annual EPS growth over three years, with improving free cash flow. EXL, a data analytics and AI solutions provider, achieved 17.2% annual revenue growth over five years and expanded its free cash flow margin by 5.2 percentage points, with EPS growth of 21.4% outpacing revenue gains. In contrast, Resideo, a home comfort and security products company, saw its free cash flow margin shrink by 20.7 percentage points over five years and posted slower 7.5% annual revenue growth, signaling capital consumption and waning returns.
CarGurus to Require Fee Disclosure on All Used Vehicle Listings
CarGurus shares rose 3.7% after the company announced it will require dealers to disclose fees on all used vehicle listings starting July 14. The policy expands its all-in pricing initiative, and any listing without disclosed fees will receive a 'No Rating' and lower search ranking. Investors viewed the move toward greater fee transparency as a positive step that could build consumer trust and enhance the user experience. The change comes as a CarGurus mid-year report noted that while new-vehicle sales were down 1.4% from the previous year, average prices rose 3.3%, suggesting resilience in the auto market. After the initial pop, the shares cooled to $34.03, up 3% from the previous close.
CARG · Regulation · Positive CarGurus announced it will require dealers to disclose fees on all used vehicle listings, a policy that investors view as building consumer trust and enhancing user experience.
CarGurus mid-year report finds used hybrid prices hit all-time high as affordability reshapes market
CarGurus released its 2026 Mid-Year Review showing used hybrid prices reaching an all-time high of $38,800, up about 11% so far this year, while the average new car list price reached $50,900 this spring, up 3.3% since December. Full-size luxury SUVs priced above $80,000 are clearing lots in under 30 days, with the Cadillac Escalade averaging about $122,000 and the Toyota Sequoia averaging $84,000, turning about 16% faster year-over-year. The share of used car sales for models over seven years old has grown from 32% in 2020 to 40% today, with high-mileage trucks like the Ford F-150, Chevrolet Silverado 1500, and RAM 1500 averaging around $20,000 and over 120,000 miles. Used hybrid sales are up nearly 34% year-to-date, led by the Toyota Camry Hybrid, Honda CR-V Hybrid, Jeep Wrangler 4xe, and Toyota RAV4 Hybrid, while used EV demand concentrates in the $25,000 to $31,000 range. The report highlights a market where $50,000 has become the norm for new vehicles and buyers are increasingly willing to compromise on age and mileage for value.
CARG · Demand · Positive CarGurus released its own mid-year report showing strong used car market trends, which highlights its platform's relevance and data authority.
7203.JP · Demand · Positive Toyota Camry Hybrid, RAV4 Hybrid, and Sequoia are highlighted as strong sellers in used market, reflecting robust demand for Toyota hybrids and SUVs.
7267.JP · Demand · Positive Honda CR-V Hybrid is a top-selling used hybrid, indicating strong demand for Honda's hybrid models.
F · Demand · Neutral Ford F-150 mentioned as a high-mileage used truck example, but no direct impact on Ford's new vehicle sales or financials.
United States