Carvana (NYSE: CVNA), the Tempe-headquartered online used car retailer, is once again proving its mettle on Wall Street. Despite a scathing short report released yesterday by "Gotham City Research,†C... ...

Carvana (CVNA) shares closed down more than 14% on Jan. 28 after Gotham City Research issued a short report against the online used car retailer. Gotham accused Carvana of more than $1 billion in overstated earnings for 2023-2024. More News from Barchart Despite a sharp decline on Wednesday, Carvana stock remains up some 40% versus its November low. www.barchart.com What Gotham Alleged in Short Report Against Carvana Stock According to Gotham City Research, the NYSE-listed firm’s celebrated “turnarou ...

Shares of Carvana plummeted 14.2% Wednesday following short-seller accusations that the online used retailer overstated earnings with the help of businesses controlled by CEO Ernie Garcia III's family.  Gotham City Research alleged Wednesday that the online used car retailer, which entered the S&P 500 last month, overstated its 2023-2024 earnings by more than $1 billion, and is "far more dependent on related parties" connected to the family than previously disclosed.To make its point, the short-seller publi ...

Core Viewpoint - Carvana is recognized for its innovative online used car retail model and is expected to continue its growth trajectory, supported by positive market sentiment and strong upcoming earnings forecasts [1][6]. Group 1: Stock Performance - Carvana's stock price was $442.56 at the time of Morgan Stanley's update, reflecting a 2.41% increase from the previous day [2]. - The stock has outperformed major indices, with a recent closing price increase of 2.41%, surpassing the S&P 500's 0.62% gain, the Dow's 0.99% rise, and the Nasdaq's 0.65% appreciation [3][6]. - Despite recent gains, Carvana's shares have declined by 4% over the past month, underperforming the Retail-Wholesale sector's 0.14% gain and the S&P 500's 0.59% increase [3]. Group 2: Financial Expectations - Investors anticipate an EPS of $1.07 for the upcoming earnings report, indicating a significant 91.07% growth from the same quarter last year [4]. - Revenue is expected to reach $5.17 billion, marking a 45.87% increase from the previous year [4]. - For the entire fiscal year, earnings are forecasted at $5.39 per share and revenue at $19.93 billion, indicating substantial growth potential [4]. Group 3: Market Capitalization and Trading Data - Carvana's market capitalization is approximately $95.95 billion, with a trading volume of 2,734,454 shares on the NYSE [5]. - The stock has traded between a low of $433.14 and a high of $457.57 on the day, with a 52-week high of $485.33 and a low of $148.25 [5].

Core Viewpoint - Carvana is a leading online used car retailer that is seen as both a disruptive innovator and a company with a potentially unsustainable business model, heavily reliant on favorable credit markets [1] Company Performance - Over the past five years, Carvana shares have gained 79%, underperforming the S&P 500's total return of 101% during the same period [2] - In the last three years, Carvana's stock has surged 8,420%, and it has increased by 80% over the past 12 months, significantly outperforming the broader market [3] Financial Health - Carvana's stock hit a low of $3.72 in late December 2022, amid concerns of potential bankruptcy due to rising debt following a $2.2 billion acquisition [4] - In Q3, unit volume and revenue increased by 44% and 55% year-over-year, respectively, while long-term debt decreased to $5.5 billion from a peak of $7.5 billion in 2022 [5] Market Opportunity - The domestic used car market saw 36 million transactions in 2023, presenting a significant opportunity for Carvana to expand its scale and increase sales and profits [8] - Carvana's shares are currently trading at a price-to-sales ratio of 3.5, close to its highest multiple reached during the 2021 bull market, indicating a potentially expensive valuation [8]

Core Insights - Sands Capital Global Growth Fund reported a -2.0% return in Q3 2025, underperforming the MSCI ACWI which returned 7.6% [1] - The fund highlighted Carvana Co. (NYSE:CVNA) as a significant investment, noting its impressive stock performance with a one-month return of 38.04% and a 52-week gain of 95.34% [2][3] Company Overview - Carvana Co. is the largest e-commerce platform for buying and selling used cars globally by revenue, operating in a market with over $1 trillion in annual sales [3] - The used car industry is highly fragmented, with the market leader holding only about 2% market share, indicating significant growth potential for Carvana [3] Business Model and Strategy - Carvana aims to transform the used car buying experience, which is often emotional and cumbersome, by offering a vertically integrated platform that enhances convenience, transparency, and competitive pricing [3] - The company’s nationwide scale and verticalization are expected to lead to attractive unit economics and strong margin expansion over time [3] Market Position and Hedge Fund Interest - As of the end of Q3 2025, 109 hedge fund portfolios held shares of Carvana Co., an increase from 91 in the previous quarter, indicating growing interest among institutional investors [4] - Despite the potential of Carvana, some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Viewpoint - Argus initiated coverage of Carvana (NYSE: CVNA) with a Buy rating and a price target of $500, citing competitive advantages and a favorable growth outlook [1] Company Analysis - Carvana's e-commerce platform for buying and selling used vehicles offers advantages over traditional dealerships in vehicle selection, pricing, quality, and overall customer experience [2] - The company has a history of strong revenue growth, a recent return to profitability, and improving operating trends in its latest results [2] - Management is making progress toward achievable sales and earnings objectives, and the balance sheet is characterized as clean [3] Technical Analysis - The stock has exhibited a bullish pattern of higher highs and higher lows since 2023 [3] Valuation and Market Context - Carvana shares are noted to be more expensive than comparable companies, raising valuation concerns [4] - Despite the valuation concerns, the company's growth runway appears compelling enough to justify the premium valuation, particularly in the near term and within a bullish market environment [4]

Group 1 - Carvana Co. (NYSE:CVNA) is experiencing strong performance, with retail units sold increasing by 41% year over year to 143,280 vehicles, marking the highest in company history [2] - Total revenue for Carvana increased by 42% to $4.84 billion, indicating robust financial growth [2] - Jim Cramer expressed a positive outlook on Carvana, stating that the stock is likely to go higher and endorsing the company's model led by Ernie Garcia [1] Group 2 - There is a perspective that while Carvana has potential, certain AI stocks may offer greater upside potential and carry less downside risk [3]

Core Insights - Carvana Co. is a significant player in the online used car retail market, offering a unique car-buying experience that differentiates it from traditional dealerships [1] - The company is experiencing a shift in consumer preference towards used vehicles, which aligns with its business model and benefits its operations [3][6] Company Performance - Carvana's stock recently increased by 4.75%, reaching a price of $374.31, with fluctuations between $357.50 and $375.77 on that day [4] - Over the past year, the stock has shown significant volatility, with a high of $413.34 and a low of $148.25 [4][6] - The market capitalization of Carvana is approximately $81.15 billion, indicating its substantial presence in the automotive retail sector [5] Market Outlook - Joseph Spak from UBS has set a price target of $450 for Carvana, suggesting a potential increase of about 20.22% from its current stock price [2][6] - The trading volume for Carvana on the New York Stock Exchange is 2,255,814 shares, reflecting active investor interest [5]

Core Insights - Carvana Co. (NYSE:CVNA) is highlighted as a stock with significant potential, particularly due to its heavily shorted status and upcoming earnings report [1] - The stock has more than doubled since its low in April, attributed to factors such as tariffs on imported autos increasing the value of used cars [1] - Carvana reported strong earnings, exceeding expectations for both revenue and profit, which contributed to a 17% increase in stock price following the announcement [1] Company Overview - Carvana operates an online platform for buying and selling used cars and also manages auction sites [1] - The company has been recommended as a strong investment for over two years, with consistent performance noted by analysts [1] Market Context - The stock's performance is influenced by external factors such as President Trump's tariffs on imported vehicles, which have made used cars more valuable [1] - Despite the positive outlook for Carvana, there are suggestions that certain AI stocks may present greater upside potential with less risk [1]