Carvana Stock Is Climbing. Time to Buy Into the Hype Ahead of Wednesday's Earnings Report?

Core Viewpoint - Carvana is set to release its third-quarter results, with the stock experiencing a 2% increase in anticipation of the report, although it remains down approximately 8% from its all-time high earlier this year [1][2]. Group 1: Stock Performance and Market Sentiment - Carvana has seen a remarkable increase of about 2,390% over the past three years, driven by strong sales and earnings growth, despite ongoing controversies surrounding the stock [4]. - The stock is considered a battleground, with notable investors divided on its future valuation; short seller Jim Chanos has raised concerns, while CNBC's Jim Cramer is optimistic about the upcoming earnings report [2][5]. Group 2: Earnings Expectations - Carvana anticipates a sequential increase in retail units sold for Q3 and expects non-GAAP EBITDA to be between $2 billion and $2.2 billion for the full year [6]. - Analysts project a year-over-year sales increase of approximately 40% to $5 billion, with earnings per share expected to more than double compared to the previous year [6].