Carvana Stock Is Joining the S&P 500. Should You Buy Shares Now?

Core Viewpoint - Carvana's stock has significantly rebounded from a low of single digits in December 2022 to $450, indicating strong recovery and potential for further value creation [1] Company Overview - Carvana operates as an e-commerce platform for buying and selling used cars, offering services such as vehicle acquisition, inspection, reconditioning, and financing options [3] Financial Performance - In Q3 2025, Carvana reported a revenue growth of 55% year-on-year, reaching $5.65 billion, with an adjusted EBITDA of $637 million, resulting in an adjusted EBITDA margin of 11.3% [4][6] - The stock has increased by 37% over the last six months, reflecting robust growth and improved fundamentals [4] Growth Targets - Carvana aims to sell 3 million cars annually within the next five to ten years, with estimates suggesting this target could be achieved by 2033 [5] - The company anticipates an increase in its adjusted EBITDA margin to 13.5% once its sales target is met, indicating expectations of healthy growth and margin expansion in the coming years [6]