Carvana Co (NYSE:CVNA) shares are up on Thursday as investors continue to digest the company’s recent earnings report. Here’s what you need to know.Carvana stock is showing exceptional strength. What’s fueling CVNA momentum?Carvana Revenue Surges Past Analyst ExpectationsCarvana last week reported fourth-quarter revenue of nearly $5.6 billion, exceeding analyst projections of around $5.26 billion, while earnings came in at $4.22 per share. However, the company faces scrutiny over rising operational expenses ...

Core Viewpoint - Carvana's stock experienced a significant surge of up to 10% following its announcement to join the S&P 500, indicating a remarkable turnaround for the company that was previously heavily shorted [1] Group 1: Stock Performance and Market Position - Carvana's shares reached a high of $438 ahead of its inclusion in the S&P 500 on December 22, 2023, as part of the Consumer Discretionary category [1] - The stock has increased over 10,000% from its all-time lows of below $4 in December 2022, when the company faced bankruptcy speculation [5][6] - Analysts from BofA reiterated a Buy rating on Carvana and raised the price target to $455 from $385, citing the company's consistent profit performance and market share gains against competitor CarMax [2] Group 2: Financial Performance and Growth Strategy - Carvana reported a net income margin of 4.7%, which is more than double the industry average for the quarter [4] - The company aims to sell 3 million cars within the next 5 to 10 years, reaffirming its long-term growth strategy [1] - BofA analysts expect Carvana to surpass CarMax in quarterly units sold by 2026, indicating strong future growth potential [3][4] Group 3: Consumer Behavior and Adoption - Over 30% of buyers now complete their entire transaction online without interacting with a customer advocate until pickup or delivery, while more than 60% of sellers do the same, highlighting the growing adoption of Carvana's fully online model [4]