Core Insights - The meme stock phenomenon began in 2021 with GameStop, driven by retail traders on Reddit's WallStreetBets forum, leading to significant price surges due to short squeezes [1] - Investments in meme stocks from 2016 or at their IPOs have resulted in varied outcomes, with some stocks yielding massive gains while others have led to substantial losses [2] Investment Performance - A $1,000 investment in various meme stocks a decade ago would yield different values today, highlighting the volatility and potential of these stocks [3] - Notable performance includes: - GameStop (GME): $3,532 (+253%) - AMC Entertainment Holdings (AMC): $11 (-98.9%) - Palantir Technologies (PLTR): $14,659 (+1,366%) - Carvana (CVNA): $29,712 (+2,871%) - Roku (ROKU): $6,033 (+503%) [4] Market Trends - Meme stocks continue to emerge, indicating a persistent trend driven by social media sentiment rather than traditional business fundamentals [5]

New York, New York--(Newsfile Corp. - February 5, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Carvana Co. (NYSE: CVNA) resulting from allegations that Carvana may have issued materially misleading business information to the investing public.SO WHAT: If you purchased Carvana securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arra ...

Core Thesis - Carvana Co. is positioned as a leading innovator in online auto retail, demonstrating strong growth and profitability in Q3 2025, with a bullish outlook for future performance [2][6]. Financial Performance - In Q3 2025, Carvana sold 155,941 retail units, a 44% increase year over year, with revenue rising 55% to $5.65 billion, marking an annualized revenue run rate exceeding $20 billion for the first time [3]. - GAAP operating income reached a record $552 million, and net income increased to $263 million, resulting in a net margin of 4.7% [3]. - Adjusted EBITDA grew by $208 million to $637 million, with an 11.3% margin, reflecting strong conversion of adjusted EBITDA into operating income [3]. Unit Economics - Despite some pressure on unit economics, retail GPU declined by $77 and wholesale GPU fell by $168, primarily due to higher vehicle depreciation [4]. - Improved financing, ancillary attach rates, stronger loan performance, and lower funding costs helped offset these headwinds [4]. - Non-GAAP SG&A per retail unit decreased by $319, indicating enhanced efficiency despite increased advertising spend [4]. Competitive Advantage - Carvana's competitive moat is supported by its vertically integrated model, which includes reconditioning, logistics, wholesale, and financing [5]. - Initiatives like ADESA site expansion and same- or next-day delivery pilots have improved selection and speed, with 40% of Phoenix customers now receiving same-day delivery compared to 10% nationally [5]. Future Outlook - Management anticipates Q4 retail units to exceed 150,000 and adjusted EBITDA to be at or above the high end of the $2.0–$2.2 billion full-year range, aiming for a long-term target of 3 million units at a 13.5% EBITDA margin [6]. - The company's strong scale, robust cash flow conversion, and operational leverage present a compelling bullish case with significant upside potential [6].

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices involving Carvana Co. and its officers or directors [1] Group 1: Investigation and Allegations - Pomerantz LLP is representing investors of Carvana Co. in an investigation regarding possible securities fraud [1] - Gotham City Research LLC released a short report claiming that Carvana's earnings for 2023-2024 are overstated by over $1 billion and that the company is more reliant on related parties than previously disclosed [3] Group 2: Market Reaction - Following the allegations from Gotham City Research, Carvana's stock price dropped by $67.68 per share, a decline of 14.17%, closing at $410.04 per share on January 28, 2026 [3]

Core Viewpoint - Block & Leviton is investigating Carvana Co. for potential securities law violations following a report alleging that the company's profitability is based on undisclosed related-party transactions [1][2]. Group 1: Investigation Details - Carvana's shares fell over 20% on January 28 after Gotham City Research reported that the company's earnings were subsidized by DriveTime, which reportedly burned over $1 billion in cash while leveraging 20x to 40x EBITDA [2]. - The report also claims that Bridgecrest marked down billions in loans as Carvana recognized gains on loan sales, raising concerns about the company's financial practices [2]. Group 2: Eligibility and Actions - Investors who purchased Carvana Co. common stock and experienced a decline in share value may be eligible to participate in the investigation, regardless of whether they sold their investment [3]. - Block & Leviton is actively investigating potential securities law violations and may file actions to recover losses for affected investors [4]. Group 3: Whistleblower Information - Individuals with non-public information about Carvana Co. are encouraged to assist in the investigation or report to the SEC under the whistleblower program, with potential rewards of up to 30% of any successful recovery [6]. Group 4: Firm's Reputation - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].

Core Viewpoint - Carvana Co. is under investigation for potential violations of federal securities laws due to significant stock price drops linked to claims of accounting improprieties [1][2]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is leading the investigation into Carvana for possible overstated earnings and improper accounting of related party transactions [3]. - The investigation follows a report by Gotham City Research LLC, which claims that Carvana's financial results are closely tied to related party entities controlled by Ernest Garcia II, indicating potential accounting irregularities [4]. Group 2: Stock Performance - Carvana's stock price fell over 20% on January 28, 2026, dropping from $474.06 per share to a low of $374.55 per share following the release of the Gotham City report [5]. - The report alleges that hidden relationships within Carvana's financial structure may have overstated earnings by over $1 billion, posing substantial risks to investors [4].

Core Insights - Carvana Co. is a leading online platform for buying and selling used cars, known for its innovative sales methods such as car vending machines and home delivery services [1] - The company faces competition from traditional dealerships and other online platforms like Vroom and Shift Technologies [1] Investigation and Stock Performance - The Rosen Law Firm is investigating Carvana for potential securities claims due to allegations of misleading business information, which led to a 14% drop in stock price following a short seller's report [2] - Despite the allegations, Wells Fargo has maintained an "Overweight" rating for Carvana, raising its price target from $500 to $525, indicating confidence in the company's future [3] - Currently, Carvana's stock is priced at approximately $416.98, reflecting a 3.96% increase, with a yearly high of $486.89 and a low of $148.25, demonstrating significant volatility [4][6] Market Capitalization and Trading Volume - Carvana's market capitalization is approximately $90.4 billion, with a trading volume of 1,527,499 shares [5][6]

Core Viewpoint - Carvana Co. is under investigation for potential violations of federal securities laws due to significant stock price drops linked to claims of accounting improprieties [2][3]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is leading the investigation into Carvana for possible overstated earnings and improper accounting of related party transactions [3]. - The investigation follows a report by Gotham City Research LLC, which claims that Carvana's financial results are closely tied to related party entities controlled by Ernest Garcia II, indicating potential accounting irregularities [4]. Group 2: Stock Performance - Carvana's stock price fell over 20% on January 28, 2026, dropping from $474.06 per share to a low of $374.55 per share following the release of the Gotham City report [5]. - The report alleges that hidden relationships within Carvana's financial structure may have overstated earnings by over $1 billion, posing substantial risks to investors [4]. Group 3: Company Overview - Carvana operates as an online e-commerce platform and used-car retailer, generating revenue primarily from online vehicle sales and auto loans, which are often securitized or sold [3].

Core Insights - Carvana Co. is under investigation by Bragar Eagel & Squire, P.C. for potential violations of federal securities laws and unlawful business practices related to undisclosed related-party transactions with DriveTime and Bridgecrest [1][5] - Gotham City Research alleges that DriveTime has spent over $1 billion in cash and leveraged up to 20 to 40 times EBITDA to support Carvana's earnings, while Bridgecrest has marked down billions in loans that Carvana recognized as gains [2] - Following these allegations, Carvana's stock price dropped by $67.68 per share, or approximately 14.2%, from $477.72 to $410.04 within a day [3] - Despite the stock price decline, Wells Fargo has maintained an "Overweight" rating on Carvana, increasing its price target from $500 to $525, indicating some analysts still see potential in the stock [3][5] Stock Performance - As of the latest update, Carvana's stock price is $401.11, reflecting a decrease of 6.16% or $26.33, with fluctuations between a low of $396.61 and a high of $427.50 on the same day [4] - Over the past year, Carvana's stock has experienced significant volatility, with a high of $486.89 and a low of $148.25 [4] - The company's market capitalization is approximately $86.96 billion, with a trading volume of 3,837,659 shares on the NYSE [4]

Core Viewpoint - Carvana Co. is under investigation for potential violations of federal securities laws due to significant stock price drops linked to claims of accounting improprieties [2][3]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is leading the investigation into Carvana for possible securities fraud [1]. - The investigation focuses on whether Carvana overstated its earnings and improperly accounted for related party transactions [3]. Group 2: Stock Performance - Carvana's stock price fell over 20% on January 28, 2026, dropping from $474.06 to a low of $374.55 per share [5]. - The decline was triggered by a report from Gotham City Research LLC, which alleged that Carvana's financial results were significantly affected by undisclosed transactions and debts related to entities controlled by Ernest Garcia II [4]. Group 3: Financial Implications - The Gotham City report claims that hidden relationships within Carvana's financial structure may have overstated earnings by over $1 billion, posing substantial risks to investors [4].