AN Autonation Inc.

$AN Like these consumer sentiment and economic conditions index. That lower K economy is essentially at the bottom of the 2008 financial crisis. So it’s not just Autonation but all of these consumer related companies, assuming we actually have a consumer recovery. Part of me has doubts, like maybe that failing lower K consumer is structurally stuck. Data is showing 25% of US millennials are either morbidly obese or junkies on drugs, they are decades of crashed out and filth all over the streets and not buying cars. 🫤 We might be stuck with some permanently failing consumer underclass if they can’t/won’t get out of that.

$AN There is some error that Schwab is showing this at $62/share pre-market. My portfolio looks like a crime scene. 😅

$AN $SPY I didn’t see any articles either but the drop came with Autonation’s investor conference, they reported lower expected gross margins on a weakening consumer. They are deferring in not only car purchases but also slower activity lately in service and repairs.

Dumping $AN over vehicle margins is pure panic — 80% of company profit comes from parts, service, and financing, yet shares sit at a dirt-cheap 7.8x P/E vs a $247 price target.

$AN just tapped its 50-month SMA ($167.47), marking a rare technical event not seen since the 2020 crash. Panic over retail unit margins is handing patient buyers a high-conviction setup. Cyclical panic always gives way to structural cash flow.

so $AN $SAH $LAD etc margin is $CVNA opportunity ? Beat down for the auto sector today on AN margin pressure comments.