Core Viewpoint - Carvana Co. is advancing its digital, vertically integrated model to move away from traditional dealerships, with credit concerns diminishing and demand remaining strong [1] Group 1: Business Model and Strategy - Carvana is leading the transition from traditional auto retail through a digital-first, data-driven, and capital-efficient approach [1][2] - This model is expected to provide a more compelling buying experience compared to traditional incumbents, creating significant value over the coming years [2] Group 2: Financial Projections and Market Outlook - Needham's analyst Mackenzie Holleran has set a price target of $500 for Carvana, reflecting a 35x multiple of projected 2027 adjusted EBITDA, supported by a sustainable and profitable growth profile [3] - The company is projected to report 2025 revenue of $18.491 billion and EBITDA of $2.100 billion [5] Group 3: Market Conditions and Risks - Concerns regarding subprime exposure are considered over-extrapolated, with the analyst suggesting that fears are linked to Carvana's previous operational fragility [3] - The analyst anticipates that improving supply of used vehicles and easing rates will lead to lower average selling prices and smaller monthly payments, which should help maintain unit demand despite tighter credit conditions [4]