Carvana Reports Earnings Later Today. Here's How Much the Stock Is Expected to Move

Core Insights - Carvana is expected to report its fourth-quarter earnings, with analysts anticipating significant stock movement following the results, despite a recent decline in share price due to a short-seller report [1] Group 1: Stock Performance and Expectations - Carvana shares have decreased nearly 15% since the beginning of the year, with a notable drop following a critical short-seller report [1] - Traders expect Carvana's stock could swing up to 13.5% in either direction after the earnings report, potentially reaching around $398 or dropping below $304 [1] - Analysts remain bullish on Carvana, with 12 out of 13 analysts rating the stock as a "buy," suggesting a mean target of $500, indicating a potential 40% upside from recent trading levels [1] Group 2: Financial Projections - Carvana is projected to report a 48% year-over-year increase in revenue, reaching $5.25 billion, while earnings per share are expected to rise to $1.01 from 56 cents a year ago [1] - JPMorgan analysts have raised their price target for Carvana to $510 from $490, citing expected strong sales growth for the fourth quarter that may continue into the first quarter of 2026 [1] Group 3: Market Position and Analyst Sentiment - Carvana has established itself as a leading used-car marketplace in the U.S., achieving record highs in stock price earlier in the year [1] - The recent short-seller report has been criticized by JPMorgan analysts for misrepresenting Carvana's financials, reinforcing their positive outlook on the company [1]