Carvana (US:CVNA) Finbold·2025-12-07 11:59Core Insights - Carvana's shares have surged following its upcoming inclusion in the S&P 500 index, which has significantly increased investor demand and momentum buying [3][4] - The stock closed at $399, up 0.2%, and saw an after-hours increase of nearly 10%, resulting in a year-to-date gain of 100% [1][4] Group 1: S&P 500 Inclusion - Carvana will join the S&P 500 index ahead of the December 22 rebalancing, leading to a spike in after-hours trading as index-tracking funds and ETFs prepare to buy shares [4] - Inclusion in the S&P 500 is expected to improve liquidity and enhance long-term credibility for Carvana [5] Group 2: Financial Performance - Carvana reported third-quarter revenue of approximately $5.65 billion, alongside improved profitability metrics, which supported its inclusion in the S&P 500 [5] - The company's recovery in unit economics, operating efficiency, and retail demand has positioned it as a leader in digital auto retail [6] Group 3: Market Dynamics - Analysts caution that the stock's premium valuation may reflect aggressive expectations, leaving little room for disappointment [6] - Part of the recent stock price spike is attributed to index-related demand rather than purely fundamental buying [6]