Here’s Why Carvana’s (CVNA) Management Reiterated Their Outlook

Core Insights - Optimist Fund achieved its strongest investment performance since inception, returning 39.2% in Q2 2025 compared to a benchmark return of 11.3% [1] - The fund focuses on investing in underappreciated, market-leading businesses led by ambitious CEOs with significant growth potential [1] Company Highlights: Carvana Co. (NYSE:CVNA) - Carvana Co. reported a 46% growth in retail units and a 38% increase in revenue, achieving an all-time high adjusted EBITDA margin of 11.5% [3] - The company has set a long-term target of 3 million annual retail units at a 13.5% EBITDA margin within 5-10 years, indicating a potential for over 40% annualized unit growth [3] - Carvana's stock closed at $365.35 on September 15, 2025, with a market capitalization of $42.727 billion, and has seen a 138.95% increase in value over the last 52 weeks [2][3] Investment Sentiment - Despite Carvana's strong performance, it is not among the 30 most popular stocks among hedge funds, with 91 hedge fund portfolios holding the stock at the end of Q2 2025 [4] - There is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to Carvana [4]