From Nasdaq: 2025-02-09 06:14:00

Carvana (NYSE: CVNA) was touted as the “Amazon of used cars” but faced volatility after going public. Stock hit $370.10 in Aug 2021, dropped to $3.72 in Dec 2022 due to inflation and interest rates. It rebounded to $255, showing potential growth.

Amazon (NASDAQ: AMZN) saw revenue growth fluctuate due to pandemic effects and market conditions. Revenue increased 38% in 2020, then slowed to 9% in 2022. In 2023, revenue rose 12% driven by e-commerce and AWS growth. Analysts project steady revenue and EPS growth from 2023-2026.

Carvana’s recovery in 2024 was attributed to lower rates, stable used-car market, and increased website traffic. Analysts predict revenue to grow at a 20% CAGR and EPS at a 72% CAGR from 2023-2026. Stock seems reasonably valued but GAAP earnings multiple is high.

Amazon’s revenue growth is expected to be driven by e-commerce and AWS. Analysts foresee a CAGR of 11% for revenue and 38% for EPS from 2023-2026. Stock is not cheap but its leadership in e-commerce and cloud markets justifies the valuation.

Carvana made a strong comeback but higher interest rates may limit its growth. Amazon’s business is expected to improve, making it a better buy. Stock Advisor didn’t recommend Carvana but highlighted 10 other stocks with potential for high returns.

Consider investing in Amazon over Carvana for better long-term growth potential. Stock Advisor offers guidance on building a successful portfolio with regular updates and stock picks. John Mackey, former Whole Foods CEO, is on the board of The Motley Fool, which has positions in Amazon.



Read more at Nasdaq: Best Stock to Buy Right Now: Amazon vs. Carvana