Carvana: Impressive Turnaround Coupled with Dilution Risk
"Stock number five is a very interesting one. Carvana went from near bankruptcy in 2022 to posting record revenue, with over $13 billion in revenue and 38 million in profit in Q2 2025. They improved operations by acquiring Adessa, which boosted efficiency, yet the company continues to dilute its shareholders. Analysts expect significant growth, projecting it could sell millions of cars in the coming years, but the current price already reflects these high expectations. If you’re considering investing in Carvana, it’s crucial to understand both its impressive turnaround and the inherent risks of a cyclical, high-risk industry."
The commentary on Carvana outlines its dramatic turnaround from near collapse to record revenue, while warning investors about ongoing share dilution and cyclical risks in the used car market. This serves as a cautionary perspective for those tempted by its growth story.
Jefferies Upgrade Boosts Carvana's Upside
"Carvana shares up about 1% was up higher earlier, but that's after Jefferies upgraded the platform for buying used cars to buy from hold. They say the company continues to deliver growth and upside to consensus. And it's primed to benefit from the shift to digital in this massive 800 billion used car market opportunity. Also raised the price target there to $475 from 385. We are at 380 right now."
Jefferies has upgraded Carvana, raising the price target from $385 to $475. The upgrade is underpinned by the company's demonstrated growth and the significant expansion opportunity in the digital used car marketplace, suggesting a strong upside potential.
Carvana Redemption: From $3.50 to $400 and Beyond
"My big hit was that I got into Carvana in May of '23 when it had dropped as low as $3.50 and now it's come all the way back to $400. When key insiders even started buying during the trough, it sent a strong signal to investors."
Eric Jackson recounts his successful trade in Carvana (ticker: CVNA), emphasizing the dramatic turnaround from a low of $3.50 to nearly $400, supported by insider buying. While not a direct call to buy now, his commentary provides investor color on the potential for significant recovery and highlights the importance of management and insider alignment in distressed stocks.