Carvana (CVNA) shares soared 6.6% in the last trading session to close at $188.85. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.5% loss over the past four weeks.Carvana's stock jumped after it reinstated an agreement to sell $4 billion worth of used-car loan receivables to Ally Financial. This yearlong deal follows claims by short-seller Hindenburg Research that Ally was distancing itself from its partnership with the onlin ...

Company Performance - Carvana has experienced a significant turnaround, with its stock price rebounding from under $5 in late 2022 to around $180 per share in January 2026, marking a 236% increase since the beginning of 2024 [1] - The company posted its third consecutive net profit in Q3 2024, with earnings of $1.26 per share, a 65% year-over-year (y-o-y) drop, but still surpassing market expectations of $0.25 per share [2] - Carvana reported a 34% y-o-y increase in vehicle sales units in Q3 2024, with expectations of sequential unit growth acceleration in Q4, indicating sustained strong sales momentum [2] - Sales grew 32% y-o-y to $3.7 billion in Q3 2024, and the adjusted EBITDA margin increased by 6.4 percentage points to 11.7% [2] - The company's net income for the first nine months of 2024 was $131 million, or $1.01 per share [3] Debt Restructuring and Financial Health - Carvana's debt restructuring initiative implemented in early 2023 played a pivotal role in its recovery, with the stock increasing approximately 40-fold over two years [3] - The debt restructuring deferred debt maturities and reduced annual interest expenses by approximately $450 million over two years [3] - The debt restructuring arrangement is set to expire in Fall 2025, which may require Carvana to resume interest payments, potentially impacting profitability [3] Market Position and Growth Potential - Carvana currently holds a 1% market share in the used car sales industry, which facilitates approximately 40 million transactions annually [4] - The company's innovative approach, including an online inventory of inspected and reconditioned vehicles, flexible delivery options, and elimination of traditional sales interactions, provides a competitive advantage over rivals like CarMax [4] Stock Performance and External Factors - Carvana's stock price has declined around 12% since the onset of 2025, primarily due to allegations made by Hindenburg Research regarding undisclosed related-party transactions and material information [5] - Carvana has denied these allegations, calling them "misleading and inaccurate" [5] - The company's stock performance over the last four years has been volatile, with annual returns more inconsistent than the S&P 500 [6] Comparative Performance - The Trefis High Quality Portfolio, consisting of 30 stocks, has provided better returns with less risk compared to the S&P 500 over the last four years, outperforming Carvana's stock [6]

Market Outlook - 2025 is not a year for passive investing, as beating the markets will require active strategies [1] - The market in 2024 was dominated by a few large-cap companies like NVIDIA (NVDA) and overarching themes like AI [1] Analyst Background - The analyst, Gary Alexander, has combined experience covering technology companies on Wall Street and working in Silicon Valley [1] - He serves as an outside adviser to several seed-round startups, giving him exposure to many of the themes shaping the industry today [1] - He has been a regular contributor on Seeking Alpha since 2017 and his articles are syndicated to company pages in popular trading apps like Robinhood [1] Disclosure - The analyst has no stock, option, or similar derivative position in any of the companies mentioned but may initiate a beneficial Long position in CVNA over the next 72 hours [2] - The article expresses the analyst's own opinions and he is not receiving compensation for it other than from Seeking Alpha [2] - The analyst has no business relationship with any company whose stock is mentioned in the article [2]

Carvana has revived a deal to sell $4 billion in used-car loan receivables to Ally Financial.The yearlong arrangement, announced Monday (Jan. 6), comes days after a report by short seller Hindenburg Research claiming that Ally was stepping back from its partnership with the online vehicle marketplace.A report by Bloomberg News noted that this deal upholds a key relationship for Carvana, which sells used cars, originating loans to its buyers before selling the receivables to other lenders. The report, citing ...

CVNA Investors with Losses Encouraged to Contact the Firm SAN FRANCISCO, Jan. 6, 2025 /PRNewswire/ -- Carvana Co. (NYSE: CVNA) shares tumbled nearly 13% during the two days ended Jan. 3, 2025 as the market digested a scathing report published by Hindenburg Research on Jan. 2, 2025.Hagens Berman has opened an investigation and urges investors in Carvana shares who suffered substantial losses to submit your losses now.Visit: www.hbsslaw.com/investor-fraud/cvnaContact the Firm Now: [email protected]            ...

SAN FRANCISCO, Jan. 03, 2025 (GLOBE NEWSWIRE) -- Carvana Co. (NYSE: CVNA) shares tumbled nearly 13% during the two days ended Jan. 3, 2025 as the market digested a scathing report published by Hindenburg Research on Jan. 2, 2025. Hagens Berman has opened an investigation and urges investors in Carvana shares who suffered substantial losses to submit your losses now. Visit: www.hbsslaw.com/investor-fraud/cvna Contact the Firm Now: CVNA@hbsslaw.com 844-916-0895 Carvana Co. (CVNA) Investigation: The investig ...

Shares of Carvana (CVNA -11.22%) were heading lower today as investors continued to respond to a short report from Hindenburg Research that accused the online used car dealer of not disclosing related-party transactions, among other things.Carvana, which has gotten frothy after skyrocketing from near-bankruptcy, fell 11% on the news. Carvana faces more questionsIn a lengthy report yesterday, Hindenburg said the company's turnaround was a "mirage," and noted $800 million in loan sales to a suspected undisclo ...

Company Overview - Carvana Co is an online retailer specializing in used vehicles [2] Allegations and Investigation - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving Carvana Co due to allegations of providing potentially misleading business information to investors [1] - Hindenburg Research accused Carvana of deceptive financial practices, including questionable accounting and undisclosed loans to a related party amounting to $800 million [3] - The report highlights risks such as lax loan underwriting practices, falling vehicle prices, and rising subprime loan delinquencies [3] Financial and Operational Concerns - Between August 2020 and August 2021, Garcia III and his father, Ernest Garcia II, sold $3.6 billion worth of Carvana stock [4] - Carvana's stock rose 284% in 2024 and is described as "exorbitantly valued" [4] - The CEO's father sold another $1.4 billion of CVNA stock as the company faces increasing credit losses and a 20% drop in its customer base since 2021 [4] - Carvana has nearly 1,000 complaints and a 1.1-star rating from the Better Business Bureau, raising concerns about its viability [4]

Key TakeawaysCarvana stock dropped for the second day in a row after Hindenburg Research disclosed a short position in the company.However, JPMorgan analysts said their own research into Carvana hasn't revealed any "red flags."The concerns raised about auto-industry loan defaults are not new and demand for used cars is strong, the analysts said. Carvana (CVNA) shares continued their slide Friday after short-selling firm Hindenburg Research declared a short position in the company, but JPMorgan analysts stuc ...

Polarizing activist short-seller Hindenburg Research—known for its bombshell reports alleging corporate fraud and other malfeasance by companies including Nikola Corp. NASDAQ: NKLA and India's Adani Group—published on January 2, 2025, an article about its latest target: Carvana Co. NYSE: CVNA. Carvana TodayCVNACarvana$194.82 -4.74 (-2.38%) 52-Week Range$40.21▼$268.34P/E Ratio19,501.50Price Target$229.18Add to WatchlistIn the report, Hindenburg alleges that the $44-billion online car dealer's stock spike of ...