Company Overview - The account is managed by Noah's Arc Capital Management, which aims to provide Wall Street-level insights to main street investors [1] - The research focus is primarily on 20th-century stocks (old economy) undergoing a 21st-century transformation, with occasional coverage of companies that facilitate such transformations [1] - The firm seeks innovations in business models that can cause significant stock price changes [1] Research Focus - The research primarily targets companies in the old economy that are undergoing modern transformations [1] - Occasionally, the firm also covers companies that assist in transforming traditional 20th-century firms [1] Authorship and Disclosure - The article is written by Noah Cox, the managing partner of Noah's Arc Capital Management, and his views may not necessarily reflect those of the firm [3] - The article is for informational purposes only and is not intended as investment advice [3]

Core Viewpoint - Carvana's stock has shown recovery after a critical report from a short-seller, with analysts defending the company and some upgrading their recommendations, leading to a 9% increase in share price [1]. Group 1: Short-Seller Report - Hindenburg Research issued a critical report on Carvana, titled "Carvana: A Father-Son Accounting Grift For the Ages," targeting CEO Ernie Garcia III and his father Ernest Garcia II [2]. - The report accused Carvana's management of significant issues, claiming that over 25% of the company's gross profit came from selling client auto loans to third parties [3]. Group 2: Analyst Responses - Analysts from Needham and JPMorgan Chase defended Carvana, maintaining their buy recommendations despite the negative report [4]. - RBC Capital and Citigroup also upgraded their recommendations to buy, with Citigroup noting Carvana's effective inventory expansion to meet market demands [5].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

After a stellar 2024, which saw Carvana's (CVNA) stock skyrocket over 300%, the online used-car e-retailer had a tumultuous start in 2025. Shares of CVNA have seen wild price action after Hindenburg Research disclosed a short position in the company last Thursday. The stock dropped below $200 on Jan. 2 for the first time since October, and extended losses on Jan. 3, plunging to $177. However, CVNA rebounded on Monday after the announcement of a significant $4 billion loan deal with Ally Financial (ALLY) , w ...

Carvana (CVNA) stock more than tripled in 2024, extending a two-year bull run that's returned 4,000% amid a turnaround effort that has pulled the online used-car retailer from the brink of bankruptcy. Shares soared to an all-time high of more than $370 in August 2021 as COVID-19 lockdowns and stimulus checks fueled a surge in used-car sales. The tides turned when inflation began to accelerate and consumers' pandemic savings dwindled. The company's share price fell 99% to a closing low of $3.72 in December ...

Shares of Carvana (CVNA 4.50%) were climbing for the second day in a row today after Wall Street analysts continued to line up behind the stock after a short-seller attacked it last week.As a result, the online used car dealer stock was up 7% as of 11:02 a.m. ET. Carvana bounces backLast week, short-seller Hindenburg Research attacked the company, saying that Carvana had undisclosed related-party transactions and that the stock was grossly overvalued. It called the stock's recovery "a mirage." After the sto ...

Shares of Carvana Co (NYSE:CVNA) are surging today, up 4.9% at $198.14 at last glance, after an upgrade from RBC to "outperform" from "sector perform," with a price-target hike to $280. The firm cited the stock's recent pullback as a buying opportunity, and noted the potential for retail sales growth. CVNA is down roughly 20% in the last month after falling from its Nov. 25 four-year high of $268.34. Regardless, the stock still carries a strong 314.9% year-over-year gain, and just bounced off support at the ...

Carvana Co. (CVNA) has reinstated an agreement to sell $4 billion 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 online car marketplace.Per the Bloomberg News report, the agreement reinforces a crucial relationship for Carvana, which finances loans for its buyers before selling the receivables to other lenders. Per BNP Paribas data, Ally has historically purchased enough recei ...

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]