Copart (CPRT) Fell After the Announcement of Quarterly Results

SVN Capital, an investment management company, released its SVN Capital Fund second quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned +6.26% net in the first half of 2025. The letter addressed the uncertainty and volatility in the market caused by policy changes, along with the portfolio and performance attributes. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, SVN Capital Fund highlighted stocks such as Copart, Inc. (NASDAQ:CPRT). Copart, Inc. (NASDAQ:CPRT) is an online auction and vehicle remarketing services providing company. The one-month return of Copart, Inc. (NASDAQ:CPRT) was -5.66%, and its shares lost 11.99% of their value over the last 52 weeks. On July 9, 2025, Copart, Inc. (NASDAQ:CPRT) stock closed at $47.64 per share, with a market capitalization of $46.065 billion.

SVN Capital Fund stated the following regarding Copart, Inc. (NASDAQ:CPRT) in its second quarter 2025 investor letter:

“Copart, Inc. (NASDAQ:CPRT), another long-term holding (~five years), is down ~25% from its recent high earlier this year—all of it following the company’s announcement of FQ3 2025 results (the company’s fiscal year-end is July 31). For context, we have endured even worse drawdowns in this stock in the past.

CPRT remains the dominant player in the duopoly market of auto salvage. The company has diversified into other business lines, such as whole car (from dealers) and heavy equipment (Purple Wave). However, the majority of revenue sources are North America based salvage vehicles, fed by insurance companies, where the company acts as the eBay of dinged and damaged vehicles…” (Click here to read the full text)

Why Copart Inc. (CPRT) Crashed On Friday

A busy car auction being held at a leading car dealership, buyers and sellers engaging in active bidding.

Copart, Inc. (NASDAQ:CPRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held Copart, Inc. (NASDAQ:CPRT) at the end of the first quarter, which was 53 in the previous quarter. While we acknowledge the risk and potential of CPRT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CPRT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Copart, Inc. (NASDAQ:CPRT) and shared the list of best 52-week low stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.