Core Viewpoint - Carvana Co (NYSE:CVNA) is experiencing a rebound, trading 2.3% higher at $324.67, following a significant pullback to the $280 level, indicating potential bullish momentum in the stock [1] Group 1: Stock Performance - The stock has shown resilience, bouncing back from the $280 level, which was a significant point during its June pullback [1] - Following a previous signal, the stock reached a high of $372 just three days later, suggesting strong upward momentum [1] - Historical data indicates that similar signals have led to an 86% success rate in the stock being higher one month later, with an average gain of 6.7% [3] Group 2: Technical Indicators - The stock is currently within 0.75 of the 200-day moving average's 20-day average true range (ATR), having remained above this level 80% of the time in the last 10 trading sessions and two months [2] - A move of similar magnitude from the current price could position the shares near $346.42 [3] Group 3: Options Market Sentiment - There has been an increase in put options, indicating a prevailing pessimistic sentiment, which could provide room for bullish movements if this sentiment reverses [5] - The 10-day put/call volume ratio stands at 1.94, ranking higher than 90% of readings from the past year, suggesting a notable level of bearish sentiment [5] - Options are currently priced low, with a Schaeffer's Volatility Index (SVI) of 67%, indicating that near-term option traders are expecting relatively low volatility [6]

Financial Metrics Definitions - The report defines Non-GAAP Gross Profit, Non-GAAP SG&A Expense, and Adjusted EBITDA as key metrics, clarifying their calculation methods involving depreciation, amortization, share-based compensation, and Root warrant revenue adjustments[3, 4, 5, 6] - Adjusted EBITDA is calculated as Non-GAAP Gross Profit minus Non-GAAP SG&A Expense[7] Unit Sales Performance - Retail units sold increased significantly over the quarters, reaching 155,941 in Q3 2025[8] - Wholesale vehicle units sold also grew, totaling 80,369 in Q3 2025[8] - Wholesale marketplace units transacted reached 260,805 in Q3 2025[8] GPU Analysis (Q3 2024 vs Q3 2025) - Total GAAP GPU decreased by $65, from $7,427 to $7,362[9] - Retail Non-GAAP GPU decreased by $77, from $3,617 to $3,540, driven by higher retail depreciation rates[9] - Wholesale marketplace Non-GAAP GPU decreased by $142, from $552 to $410, influenced by an 11% increase in wholesale marketplace units transacted offset by 44% retail units sold growth[9] - Other Non-GAAP GPU increased by $63, from $2,945 to $3,008, due to improvements in cost of funds and higher finance and VSC attach rates, partially offset by higher than normalized loan sales relative to originations in Q3 2024[9] - Total Non-GAAP GPU decreased by $182, from $7,685 to $7,503[9] SG&A Expense per Unit Analysis (Q3 2024 vs Q3 2025) - Total GAAP SG&A Expense per Unit decreased by $501, from $4,317 to $3,816[9] - Carvana Operations SG&A per unit decreased by $96, from $1,731 to $1,635, due to continued operations efficiencies[9] - Wholesale marketplace Operations SG&A per unit decreased by $48, from $138 to $90, driven by cost leverage on retail units sold growth[9] - Overhead SG&A per unit decreased by $314, from $1,353 to $1,039, also due to cost leverage on retail units sold growth[9] - Advertising SG&A per unit increased by $138, from $516 to $654, reflecting increased advertising spend[9] - Total Non-GAAP SG&A Expense per Unit decreased by $319, from $3,737 to $3,418[9]

Core Viewpoint - Carvana Co. (NYSE:CVNA) is currently experiencing a downtrend, but there are indications that this may soon reverse, presenting a potential buying opportunity as the stock is oversold and at a support level [1][4]. Group 1: Stock Performance - Carvana's stock is trading lower on Tuesday, continuing a downtrend that began on October 1 [1]. - The stock is currently at a support level of $327, which was also a support level in July and August [1]. - The stock remains oversold, indicating that aggressive sellers have pushed it below its typical range, which may attract buyers anticipating a reversal [4][5]. Group 2: Market Dynamics - In the stock market, previous support levels can become significant again, as regretful sellers may repurchase shares when the price returns to these levels [3][4]. - If enough buy orders are placed at the support level, it can create renewed support, potentially leading to upward pressure on the stock [4][5]. Group 3: Technical Indicators - The Commodity Channel Index (CCI) is used to determine if a stock is oversold; when the CCI falls below a certain threshold, it indicates oversold conditions [6][7]. - The recent movement of the CCI suggests that Carvana may be poised for a rally, as it has just fallen below the red line and is showing signs of reversal [7].

Core Insights - Carvana achieved record retail unit sales and revenue in Q2, with retail unit sales increasing by 41% year over year to 143,280 and revenue rising by 42% to $4.84 billion, significantly outpacing the market growth of less than 5% [2][3] Group 1: Growth Drivers - The growth in Q2 was attributed to three key long-term drivers: improving customer offerings, increasing awareness and trust, and enhanced inventory selection due to scale benefits [3] - Carvana's operations expense per retail unit decreased by $150 compared to the previous year, indicating improved operational efficiency [5] Group 2: Operational Improvements - The company now delivers cars to customers 0.7 days faster than a year ago by integrating more facilities, allowing for better inventory management [4] - There is a 23% increase in sales per customer service advocate compared to last year, achieved by simplifying the eCommerce experience [4] Group 3: Market Context - Carvana noted that while the industry may have experienced some pull-forward in sales due to tariffs, overall sales remained flat [6]