Carvana Stock Was a Top Performer in 2025. Is There Gas Left in the Tank for 2026?

Core Insights - Carvana Co. (CVNA) has experienced a remarkable turnaround, emerging as a standout performer in the market with strong stock appreciation and renewed investor confidence in its business model [1][4] - The company reported record-breaking quarterly results in revenue, unit sales, and profitability, leading to its inclusion in the S&P 500 Index, marking a significant milestone in its recovery [1][7] - Carvana's stock has rallied approximately 95.7% over the past year, with year-to-date gains of 115.6%, closing at $438.47, driven by improving fundamentals and record vehicle sales [6] Company Overview - Carvana is a leading e-commerce platform focused on the buying, selling, financing, and delivery of used vehicles, operating one of the most ambitious vertically integrated automotive businesses in the U.S. [3] - Since its IPO in 2017, Carvana has transformed from near-bankruptcy to achieving strong profitability margins and rapid sales growth, with a current market cap of around $96.1 billion [4][5] Market Performance - Following a near-collapse in late 2022, Carvana's shares have surged thousands of percent, significantly outperforming peers and the broader S&P 500 [5] - The stock saw heightened momentum after the announcement of its inclusion in the S&P 500 Index, resulting in a 12.1% intraday surge on December 8 and reaching a 52-week high of $485.33 on December 12 [6][7]