Core Insights - Carvana has experienced a dramatic turnaround, moving from significant losses to record revenue and gross profit per vehicle in 2023 after nearly collapsing in 2022 [1][4]. Company Performance - By the end of 2022, Carvana's annual loss reached nearly $2.9 billion despite selling more than double the number of cars compared to 2019 [1]. - The stock price fell 98% in 2022, trading just below $4 per share, but has since rallied 11,000%, leading to its inclusion in the S&P 500 [2]. - Carvana's CEO, Ernie Garcia, noted the company's resilience during challenging market conditions, culminating in its first annual profit in 2024 [4][5]. Market Position - Analysts predict Carvana could grow its share of the used car market from 1.5% today to 12% by 2040, with some referring to it as the potential "Amazon of auto retail" [5]. - Short sellers have faced significant losses, totaling $8.44 billion since Carvana's all-time low in 2022 [6]. Industry Context - The broader market faced challenges in 2022, with the S&P 500 declining 19%, marking one of its worst performances outside of a recession [4]. - Other companies like Robinhood and Coinbase also experienced sharp recoveries, highlighting a trend of significant market turnarounds [2][6].

Core Viewpoint - Carvana's inclusion in the S&P 500 has significantly boosted its stock price and trading volume, reflecting improved operational efficiency and financial management [1][2]. Group 1: Stock Performance and Market Reaction - Carvana's shares rose by 12% on the announcement of its S&P 500 inclusion, contributing to a year-to-date gain of 125% [1]. - The trading volume on the day of the announcement reached 14 million shares, a notable increase from the average daily volume of 3.3 million shares [2]. - The stock has surged an extraordinary 9,540% since January 2023, indicating a strong recovery [1]. Group 2: Financial Metrics and Operational Improvements - Carvana's gross margin increased from 5% at the end of 2023 to nearly 20% in Q3 2025, showcasing improved profitability [5]. - Net debt has decreased from a peak of $8 billion at the end of 2023 to $3 billion, indicating better financial management [5]. - In Q3, Carvana sold approximately 156,000 retail units, a 44% year-over-year increase, with total revenue growing by 55% due to higher average unit selling prices [7]. Group 3: Future Outlook and Strategic Goals - CEO Ernest Garcia has set an ambitious target of selling 3 million vehicles over the next five to ten years, which he believes is achievable [7]. - The inclusion in the S&P 500 is expected to provide access to higher levels of institutional capital, reducing reliance on retail investors [4]. Group 4: Risks and Concerns - A significant portion of Carvana's customers are subprime borrowers, which raises concerns about potential defaults in an economic downturn [8]. - Insiders have sold $51 million worth of stock since November 1, raising questions about the stock's valuation [8]. - Growth in cash from operations has not kept pace with net income growth, indicating potential liquidity issues related to subprime loan receivables [9].

Core Insights - Alta Fox Capital Management has initiated a new position in CarGurus, acquiring 1,098,700 shares valued at approximately $40.90 million, which constitutes 9.12% of the fund's assets under management as of September 30, 2025 [1][2][3] Company Overview - CarGurus operates a leading digital platform that connects buyers and sellers in the automotive market, utilizing data-driven insights and technology to facilitate efficient vehicle transactions [6][8] - The company reported a total revenue of $926.42 million and a net income of $151.99 million for the trailing twelve months [4] - As of December 8, 2025, CarGurus shares were priced at $35.84, reflecting a one-year price change of -7% [3][4] Investment Rationale - Alta Fox's investment in CarGurus aligns with its strategy of focusing on underfollowed and potentially undervalued small-cap companies, with CarGurus being valued at $3.6 billion [10] - The investment represents a significant bet, as it already accounts for a substantial portion of Alta Fox's portfolio [10] - CarGurus has maintained an average free cash flow margin of 17% and has returned to single-digit sales growth despite challenges in the used car market [12] Competitive Position - CarGurus is recognized as an industry leader, particularly in aggregating vehicle listings and research, which supports its competitive advantage in the evolving automotive e-commerce landscape [9][11] - The company serves a broad network of dealers and individual consumers, providing various services including vehicle listings, financing solutions, and trade-in services [8]

Core Viewpoint - Carvana (CVNA) has been added to the S&P 500 Index, which has significantly impacted its stock performance, raising questions about whether this is a sell-the-news situation or the beginning of a larger trend for the company [1][2]. Company Performance - Carvana has experienced a remarkable 3-year return of 7,800%, with its stock price fluctuating from approximately $375 per share to near-zero and back to previous peaks within 50 months [3]. - The company's current market capitalization stands at $87 billion, and it has a beta of 3.5 over the past 5 years, indicating high volatility [4]. Institutional Ownership - More than 56% of Carvana's shares are owned by institutional investors, which raises concerns that these investors may sell at the first sign of trouble [4]. Market Dynamics - Being part of the S&P 500 allows Carvana to benefit from passive investment flows associated with the index, providing a natural support for its stock price that was not present before [7]. - Despite its inclusion in the S&P 500, Carvana is not among the top 150 largest stocks in the index, suggesting it may not significantly influence market movements but will likely follow the broader trends of the S&P 500 [8]. Technical Analysis - The daily price chart indicates a strong breakout for Carvana, but the lack of repeatable news and the potential for volatility due to high expectations are concerns [6][8]. - The weekly chart shows a flatter appearance, with the 20-week moving average recently turning higher, but similar event-related concerns persist [9].

Core Insights - Carvana is set to join the S&P 500 on December 22, marking a significant turnaround for the company, which was previously considered a "zombie" by Wall Street [1][4] Company Performance - Carvana went public in 2017 with an IPO price of $15, but shares closed their first trading day at approximately $11. Sales increased from $859 million in 2017 to nearly $4 billion in 2019, although expenses grew rapidly, leaving the company unprofitable [2] - The COVID-19 pandemic disrupted global manufacturing, leading to a surge in used car prices and a tripling of Carvana's sales in the two years following the pandemic's onset. The stock price soared from about $29 in March 2020 to a record high of $370 in August 2021, reflecting a 1,160% increase [3] Financial Challenges - Carvana's debt tripled, and the company faced significant challenges when the Federal Reserve began raising interest rates in March 2022, which increased debt costs and reduced car demand. The stock plummeted to an all-time low of $3.72 in December 2022 [5] - In response, Carvana implemented a cost-cutting strategy that included layoffs and restructuring, along with a deal with creditors to alleviate its debt burden. This led to a plateau in interest expenses and a decline in operating costs, resulting in shares closing at a record $399.77, up over 10,000% in three years [6] Market Sentiment - Despite skepticism from short-sellers regarding the legitimacy of Carvana's turnaround, investor confidence has returned, with shares rising another 10% following the announcement of its inclusion in the S&P 500 [7] - Being added to the S&P 500 is expected to bring tangible benefits, as an estimated $13 trillion is indexed to the S&P 500, necessitating the purchase of Carvana stock by investment funds tracking the index [8]

Just a few years ago, who could have thought that Carvana Co. ( CVNA ) would make it to S&P500 inclusion? I have to say, it was definitely not me. This company made a very-very long journeyI write about stocks I’m personally interested in adding to my portfolio. I’m not a professional advisor, but I study business and economics and analyze markets full-time. My writing is meant for both complete beginners — I avoid unnecessary complexity — and advanced readers, as I always aim to offer a distinct and well-r ...

Core Viewpoint - Carvana (CVNA.US) is set to be included in the S&P 500 index, effective December 22, which is expected to attract passive investment inflows [1] Group 1: Stock Performance - On Monday, Carvana's stock rose over 8% in pre-market trading, indicating a potential to reach a historical high at the opening [1] Group 2: Analyst Ratings - Bank of America Securities maintained a buy rating on Carvana and raised the price target from $385 to $455, citing the company's inclusion in the S&P 500 and strong financial performance as key factors [1]

Core Viewpoint - Carvana Co. will be added to the S&P 500 index as part of the quarterly rebalance, surprising many investors who expected larger tech companies or major crypto entities to be included [1][3]. Group 1: S&P 500 Rebalance - Carvana will join the S&P 500 index in the next two weeks, along with CRH Plc and Comfort Systems USA, while LKQ Corp, Solstice Advanced Materials, and Mohawk Industries will be removed [2]. - Carvana's stock surged 9.81% in premarket trading following the announcement of its inclusion in the index [2]. Group 2: Company Performance - Carvana's inclusion follows a period of strong performance, with shares rising after an upgrade from Wedbush analyst Scott Devitt, who highlighted the company's potential to reach three million annual unit sales by 2033 [4]. - Carvana holds a momentum rating of 84.70% and a growth rating of 99.15%, indicating strong historical earnings and revenue expansion [6]. Group 3: Market Conditions - Carvana's business model is closely tied to borrowing costs, particularly for subprime and lower-prime borrowers, and the anticipation of lower interest rates by the Federal Reserve has improved the company's outlook [5]. - Year-to-date, Carvana's stock has climbed 100.33% [6].

Core Viewpoint - Carvana (CVNA), Comfort Systems (FIX), and CRH (CRH) will be added to the S&P 500 index as part of S&P Global's quarterly rebalancing, leading to a positive market reaction for these stocks [1] Group 1 - Carvana's stock experienced a significant increase in after-hours trading following the announcement [1] - Comfort Systems and CRH also saw their stock prices rally after the news [1] - The three companies are set to emerge from periods of consolidation in the market [1] Group 2 - The trio of companies will replace LKQ (LKQ) and Solstice Advanced in the S&P 500 index [1]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]