Core Insights - Carvana's stock experienced a significant decline of 20% following allegations from Gotham City Research, which accused the company of inflating profits to mislead investors and benefit its largest shareholder [1][1][1] Group 1: Stock Performance - Carvana's stock surged 10,000% over the past three years due to a turnaround effort, which is now being questioned by short sellers [1][1] - The stock fell 15% on Wednesday, erasing year-to-date gains and approaching its lowest price since early December [1][1] - Despite the recent slump, Carvana shares have increased approximately 10,000% since hitting an all-time low in December 2022 [1][1] Group 2: Allegations and Accusations - Gotham City Research claims Carvana overstated its profits by $1 billion for the years 2023 and 2024, while the company reported a total net income of about $550 million for those years [1][1] - The report echoes previous accusations from Hindenburg Research and Jim Chanos regarding Carvana's accounting practices [1][1] - Allegations suggest that Carvana inflated profits through dealings with companies owned by Ernest Garcia II, its largest shareholder [1][1] Group 3: Company Background and Developments - Carvana faced a dramatic decline in value between 2021 and late 2022 before initiating a turnaround in 2023, which included cost cuts and a deal with creditors [1][1] - The company's recent addition to the S&P 500 marked a significant milestone in its recovery efforts [1][1]

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: Company Performance and Allegations - Carvana's shares fell over 20% on January 28, 2026, after a report from Gotham City Research claimed that the company relies on undisclosed transactions with DriveTime and Bridgecrest to report profitability [2]. - The report alleges that DriveTime incurred over $1 billion in cash losses while leveraging up to 20x to 40x EBITDA to support Carvana's earnings [2]. - It is also claimed that Bridgecrest marked down billions in loans while Carvana recognized gains from loan sales [2]. Group 2: Legal Actions and Investor Information - Block & Leviton is investigating whether Carvana committed securities law violations and may file an action to recover losses for affected investors [4]. - Investors who purchased Carvana common stock and experienced a decline in share value may be eligible to participate in the investigation, regardless of whether they sold their shares [3]. - The firm encourages investors who have lost money to contact them for more information on potential recovery options [5]. Group 3: Whistleblower Information - Individuals with non-public information about Carvana are encouraged to assist in the investigation or report to the SEC under the whistleblower program, which offers rewards of up to 30% of any successful recovery [6]. Group 4: Firm's Reputation and Services - 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 - 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 [2][4]. Group 1: Investigation Details - Carvana's shares fell over 15% 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 [2]. Group 2: Eligibility and Actions - Investors who purchased Carvana Co. common stock and experienced a decline in share value may be eligible to recover losses, 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, potentially receiving 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].

Carvana Co. (NYSE:CVNA) is one of the best US stocks to buy and hold in 2026. On January 21, Barclays analyst John Babcock raised the firm’s price target on Carvana to $530 from $465 and kept an Overweight rating. As part of its Q4 outlook, the firm updated its targets for the auto retail sector, generally lowering estimates due to sluggish new vehicle sales. Despite these pressures on unit volume, recent industry checks point to strong continued momentum in the used vehicle market. Earlier on January 15, ...

Company Overview - Khaveen Investments is a global investment advisory firm serving high-net-worth individuals, corporations, associations, and institutions [1] - The firm is a registered investment adviser with the Securities Exchange Commission (SEC) [1] - It offers comprehensive services including market and security research, business valuation, and wealth management [1] Investment Strategy - The flagship Macroquantamental Hedge Fund maintains a diversified portfolio with exposure to hundreds of investments across various asset classes, geographies, sectors, and industries [1] - The investment approach integrates top-down and bottom-up analysis, blending three core strategies: global macro, fundamental, and quantitative [1] Core Expertise - The firm's core expertise lies in disruptive technologies that are reshaping modern industries [1] - Key focus areas include Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT) [1]

Group 1: Investment Recommendations - Bank of America has identified several stocks well-positioned for the upcoming earnings season, including Amazon.com Inc., Brookdale Senior Living Inc., Corning Inc., Vertiv Holdings Co., and Carvana Co. [1] - Amazon is highlighted as a compelling investment due to its potential for valuation improvement, particularly if AWS revenue growth accelerates and AI capabilities are strengthened [2][3] - Brookdale Senior Living has been upgraded to a buy rating, benefiting from an aging population, with shares rising nearly 13% this year [4] - Carvana is recognized for its growth potential, driven by innovation and new initiatives, with its stock up 6% this year [5] - Corning has been rated a buy, supported by a favorable balance of glass supply and demand, and expected growth from carrier spending and Gen AI in the Optical market [6] - Vertiv is expected to benefit from margin recovery and improved free cash flow, with increased demand for its thermal management products due to AI adoption in data centers [7] Group 2: Market Trends and Earnings Outlook - The tech industry is anticipated to have a strong Q4 earnings season, with predictions of impressive earnings from tech giants like Amazon, Microsoft, and Alphabet, driven by demand for AI enterprise services [8] - The upgrade of Brookdale Senior Living reflects strong growth potential in the senior housing sector, despite challenges in the healthcare landscape [9] - Corning's strong Q3 results, with core sales up 14% year over year and enterprise sales in Optical Communications surging 58%, highlight ongoing shifts in digital infrastructure and materials science sectors [10]

Core Viewpoint - Carvana has received a price target increase to $600 from Deutsche Bank, indicating strong confidence in the company's future performance and market positioning [1] Group 1: Company Analysis - Carvana is well positioned to benefit from a potential cyclical recovery in 2026, supported by policy measures and an aging vehicle fleet in the U.S. [1] - The company is highlighted as a major beneficiary of increased consumer spending and digital adoption in the used vehicle market [1] - Carvana could strengthen its market leadership through physical infrastructure advantages in a digitally underpenetrated industry, allowing for unit growth that exceeds expectations [2] Group 2: Industry Trends - The analysis discusses broader e-commerce and AI-driven trends, with Amazon positioned to influence agentic commerce [2] - AWS revenue growth is expected to accelerate in 2026 as new capacity from Trainium and NVIDIA becomes available [2] - Margin expansion opportunities are anticipated for select companies in 2026, with Chewy and DoorDash identified as having paths to improved margins and returns on investments [3]

Core Viewpoint - Carvana has experienced a remarkable stock rebound, rising from a low of $3.55 in 2022 to nearly $470, with significant gains occurring before 2025 and continuing into early 2026 [1][2]. Group 1: Company Performance - Carvana has executed a successful turnaround, with its business performing exceptionally well, raising questions about whether the stock price has outpaced its underlying fundamentals [2]. - In Q3, Carvana sold 155,941 retail units, representing a 44% increase year-over-year, and revenue surged by 55% to approximately $5.65 billion [5]. - The company reported a net income of $263 million, up 78% year-over-year, and adjusted EBITDA of $637 million, which is a 48% increase year-over-year [5]. Group 2: Future Outlook - Management indicated that momentum is expected to continue, projecting sales of over 150,000 retail units in Q4 and adjusted EBITDA for the full year of 2025 to be at or above the high end of the previous forecast of $2.0 billion to $2.2 billion [6]. - CEO Ernie Garcia highlighted the company's focus on leveraging the structural advantages of its vertically integrated model to enhance business performance and customer offerings [7]. Group 3: Market Reaction - Carvana's stock has remained strong following a significant run in 2025, reflecting the company's rapid growth and substantial profitability [8].

Core Insights - The rise of prediction markets like Polymarket and Kalshi provides new avenues for both gambling and investment strategies, allowing investors to navigate market conditions more effectively [1][2] - Danny Moses emphasizes the importance of monitoring prediction markets for insights that could influence investment decisions, particularly in economics and business [2] - Prediction markets can offer valuable information for both bullish and bearish investors, as seen in the case of SoFi Technologies, which has a 38% chance of being added to the S&P 500 by 2026, contributing to its 93% stock price increase over the past year [3][4] Industry Trends - The potential for prediction markets to provide better risk-reward scenarios compared to traditional derivatives is highlighted, with cryptocurrency being a notable example [4][5] - Institutions are expected to increasingly adopt prediction markets, leading to heightened activity and participation from major players in the market [6]

Core Viewpoint - Carvana (CVNA) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Impact - The Zacks rating system focuses on changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For the fiscal year ending December 2025, Carvana is expected to earn $5.46 per share, with a 10.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Carvana's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].