2026 Just Started and Carvana Stock Is Already Up Sharply. Can It Keep Soaring?

Core Viewpoint - Carvana has experienced a remarkable stock rebound, rising from a low of $3.55 in 2022 to nearly $470, with significant gains occurring before 2025 and continuing into early 2026 [1][2]. Group 1: Company Performance - Carvana has executed a successful turnaround, with its business performing exceptionally well, raising questions about whether the stock price has outpaced its underlying fundamentals [2]. - In Q3, Carvana sold 155,941 retail units, representing a 44% increase year-over-year, and revenue surged by 55% to approximately $5.65 billion [5]. - The company reported a net income of $263 million, up 78% year-over-year, and adjusted EBITDA of $637 million, which is a 48% increase year-over-year [5]. Group 2: Future Outlook - Management indicated that momentum is expected to continue, projecting sales of over 150,000 retail units in Q4 and adjusted EBITDA for the full year of 2025 to be at or above the high end of the previous forecast of $2.0 billion to $2.2 billion [6]. - CEO Ernie Garcia highlighted the company's focus on leveraging the structural advantages of its vertically integrated model to enhance business performance and customer offerings [7]. Group 3: Market Reaction - Carvana's stock has remained strong following a significant run in 2025, reflecting the company's rapid growth and substantial profitability [8].