Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices involving Carvana Co. following a short report alleging significant overstatement of earnings and undisclosed dependencies on related parties [1][2]. Group 1: Investigation and Allegations - Pomerantz LLP is representing investors in Carvana Co. and is looking into claims of securities fraud or other unlawful business practices by the company and its executives [1]. - Gotham City Research LLC published a short report on January 28, 2026, claiming that Carvana's earnings for 2023-2024 are overstated by over $1 billion and that the company is more reliant on related parties than previously disclosed [2]. Group 2: Market Reaction - Following the allegations from Gotham City Research, Carvana's stock price dropped by $67.68, or 14.17%, closing at $410.04 per share on January 28, 2026 [2].

Group 1 - The law firm Kirby McInerney LLP is investigating potential claims against Carvana Co. regarding possible violations of federal securities laws and unlawful business practices by the company and its senior management [1] - A report by Gotham City Research alleges that Carvana's reported profitability is based on undisclosed related-party transactions with DriveTime and Bridgecrest, claiming that DriveTime incurred over $1 billion in cash losses while leveraging 20x to 40x EBITDA to support Carvana's earnings [1] - Following the allegations, Carvana's share price dropped by $67.68, approximately 14.2%, from $477.72 on January 27, 2026, to $410.04 on January 28, 2026 [1] Group 2 - No lawsuit has been filed yet, and the investigation is ongoing to assess whether claims can be made under federal securities laws [2] - Individuals who purchased or acquired Carvana securities and have information related to the investigation are encouraged to contact Kirby McInerney LLP for further discussion [2]

Core Viewpoint - Carvana Co. (NYSE:CVNA) shares are experiencing a rebound after a significant drop due to allegations of inflated earnings from a short seller report [1] Group 1: Stock Performance - Carvana stock is gaining positive traction, reversing from levels around $400, which previously acted as resistance and is now turning into support [2] - The stock encountered resistance at the $125 level in May 2024, which was later broken, and when the stock returned to this level, it became support [2] - Similar patterns are observed at the $160 and $285 levels, where previous resistance levels converted into support after being broken [3] Group 2: Market Behavior - The phenomenon of resistance levels converting into support is common in financial markets, often due to seller's remorse [4] - Traders who sold at resistance levels may regret their decision when prices rise, leading them to buy back shares at the same price, thus forming support [4] - Carvana found support at the $400 level on January 2 and again recently, indicating a potential upward trend [5]

Core Viewpoint - Carvana Co. is facing a securities fraud investigation triggered by a short seller report, which has led to a stock price drop of over 20% [1] Group 1: Company Overview - Carvana Co. has experienced a significant decline in its stock value, dropping more than 20% following the release of a short seller report [1] - The company is now under investigation for potential securities fraud as a result of the allegations made in the report [1] Group 2: Investor Actions - Investors have been notified to contact BFA Law regarding the situation, indicating potential legal actions or claims related to the stock drop [1]

Core Viewpoint - Carvana Co. is facing scrutiny following a report from Gotham City Research alleging significant accounting irregularities and undisclosed related-party transactions, leading to a substantial drop in its stock price [2][3]. Group 1: Investigation Details - Moore Law, PLLC is investigating potential claims against Carvana's officers and directors due to the allegations raised by Gotham City Research [1]. - The stock price of Carvana fell approximately 20% to $376.46 before closing at $410.04 after the report was released [2]. - Gotham's report claims that Carvana overstated its earnings for 2023-2024 by over $1 billion and relied heavily on related-party transactions [3]. Group 2: Financial Implications - The report highlights that DriveTime's financial struggles, including burning through more than $1 billion in cash over 2023 and 2024, significantly impacted Carvana's adjusted EBITDA [3]. - There are concerns regarding a delayed 2025 10-K filing and potential restatements of past annual reports, with auditor Grant Thornton identified as a possible weak link in the financial oversight [3].

Core Viewpoint - Block & Leviton is investigating Carvana Co. for potential securities law violations following a report alleging that the company's profitability is based on undisclosed related-party transactions [2][4]. Group 1: Investigation Details - Carvana's shares fell over 15% on January 28 after Gotham City Research reported that the company's earnings were subsidized by DriveTime, which reportedly burned over $1 billion in cash while leveraging 20x to 40x EBITDA [2]. - The report also claims that Bridgecrest marked down billions in loans as Carvana recognized gains on loan sales [2]. Group 2: Eligibility and Actions - Investors who purchased Carvana Co. common stock and experienced a decline in share value may be eligible to recover losses, regardless of whether they sold their investment [3]. - Block & Leviton is actively investigating potential securities law violations and may file actions to recover losses for affected investors [4]. Group 3: Whistleblower Information - Individuals with non-public information about Carvana Co. are encouraged to assist in the investigation or report to the SEC under the whistleblower program, potentially receiving rewards of up to 30% of any successful recovery [6]. Group 4: Firm's Reputation - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].

Core Viewpoint - Carvana (CVNA) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Impact - The Zacks rating system focuses on changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For the fiscal year ending December 2025, Carvana is expected to earn $5.46 per share, with a 10.3% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Carvana's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company operates with a team of experienced and qualified news journalists across key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered by the team includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Utilization - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company employs automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans to maintain best practices in content production and search engine optimization [5]

Core Viewpoint - Carvana (CVNA) has experienced a remarkable recovery in 2025, with its stock price increasing approximately 125% year-to-date, transitioning from a high-risk turnaround story to a rapidly growing and profitable online auto retailer [1] Company Overview - Carvana is valued at $99.1 billion and operates as an online automotive retailer, allowing customers to buy, sell, and finance used cars entirely online, aiming to enhance the car-buying experience through speed, convenience, and data-driven processes [3] Financial Performance - In Q3, Carvana sold 150,941 retail units, marking a 44% year-over-year increase, while revenue rose 55% to $5.65 billion, achieving an annual revenue run rate exceeding $20 billion for the first time [4] - Net income reached $263 million, with adjusted EBITDA hitting a record high of $637 million, and nearly 87% of adjusted EBITDA was converted into GAAP operating income, indicating high-quality earnings [4] Growth Strategy - Management highlighted the "feedback flywheel" effect, where rising data enhances pricing, inventory management, logistics, and customer experience, supporting the long-term goal of selling 3 million cars annually at a 13.5% adjusted EBITDA margin over the next five to ten years [5] - Increasing automation and vertical integration are driving investor enthusiasm, with over 30% of retail buyers completing the shopping process without interacting with a customer representative until delivery or pickup [5] Operational Efficiency - The level of automation requires interconnected systems, real-time data availability, and defined workflows, which streamline the client experience and reduce operating costs [6] - Carvana has significantly improved its financial position by retiring $1.2 billion in corporate debt in 2024 and 2025, and it reported $2.1 billion in cash on its balance sheet at the end of Q3 [6]

Core Insights - The article discusses the latest trends and developments in the investment banking sector, highlighting key financial metrics and market movements. Group 1: Industry Trends - Investment banking is experiencing a shift towards digital transformation, with firms increasingly adopting technology to enhance efficiency and client engagement [1] - The sector is witnessing a rise in mergers and acquisitions, driven by favorable market conditions and low interest rates, which are encouraging companies to pursue growth strategies [1] Group 2: Company Performance - Major investment banks reported a significant increase in revenue, with an average growth rate of 15% year-over-year, attributed to higher trading volumes and advisory fees [1] - Cost management remains a priority for firms, with many implementing measures to reduce operational expenses by approximately 10% over the next fiscal year [1]