Activist Starboard urges CarMax to overhaul digital sales, cut costs

Starboard Value, an activist investor, is pushing CarMax to revamp its digital sales strategy and reduce operating costs. The firm argues that CarMax has been lagging in the competitive used car market, particularly in online sales capabilities. This pressure could lead to significant operational changes for the company, and possibly impact the earnings outlook. The call for cost-cutting measures may be seen positively by investors looking for improved margins. Overall, the intervention suggests a more aggressive growth strategy could be ahead for CarMax if they respond favorably to the recommendations.