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NYSE:CVNA
Carvana (CVNA)
Financials 
Technical Analysis 
Jun 11, 2026, 12:00 amThis summary was created by AI, based on 7 opinions in the last 12 months.
Carvana (CVNA) has shown remarkable growth, with a notable 43% increase in retail unit sales and impressive financial outcomes, including $951 million in net income. Recent social media buzz has surged by 1217%, indicating heightened public interest. Despite a high valuation at 82X forward earnings and some concerns about potential earnings overstatements, analysts expect continued growth driven by expanded infrastructure and operational efficiencies. While there are macro challenges, like interest rates, the consensus is largely optimistic about its profitability and margin expansion potential. Overall, the stock has significantly appreciated, with shares jumping up to 109% this year, prompting some experts to recommend cautious buying strategies.
It got its groove Back. From mid-September till last week, shares were cut in half. The used car business is not the place to be when you're worried about interest rates. But shares are popping in the past week, partially due to a benign Fed/Powell meeting, and Carvana reported a stellar quarter last week.
CVNA has recovered quite well this year, after a substantial drawdown of around 90% from its peak in 2021 and it is now trading at 0.2x times' Price/Sales (as the company has negative EBITDA, earnings and even book value). Growth was more than 100% in COVID years but went substantially to even negative growth in recent quarters. The balance sheet is highly leveraged with $8.2B of net debt while still burning cash. Overall, the company was growing really fast in the COVID years, with the promise to become the leader of used cars. However, the company is still unprofitable, burning cash quite significantly, highly leveraged, and may need to raise additional capital in tough times. We consider the share price highly volatile, and we would prefer to wait until profitability has been achieved. The company came precariously close recently to going under, and the short position remains more than 50%. Too risky for us.
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Premium contentFounded in 2012 and based in Phoenix, Carvana's mission is to change the way people buy cars. By removing the traditional dealership infrastructure and replacing it with technology and exceptional customer service, Carvana offers consumers an intuitive and convenient online car buying and financing platform. Carvana.com enables consumers to quickly and easily shop more than 20,000 vehicles, finance, trade-in or sell their current vehicle to Carvana, sign contracts, and schedule as-soon-as-next-day delivery or pickup at one of Carvana's patented, automated Car Vending Machines. Social media mentions are up 152% in the past 24h.
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One of the greatest, fastest turnaround stories he's seen. It's avoided bankruptcy, raised money and has bounced back.