From Yahoo Finance: 2025-04-16 09:00:00

Carvana (NYSE: CVNA) has seen its stock price soar 2,000% in the last two years, now trending back up. With a 45% drop from its peak, investors wonder if it’s a good time to buy. Carvana aims to revolutionize car buying, with a vast inventory and online model.

Carvana’s revenue surged 326-fold from 2014 to 2024, selling 416,000 cars last year. Despite this growth, it holds just a 1.2% market share in the U.S., indicating room for expansion. The company reported a record operating profit of $990 million in 2024, with $6,908 in average gross profit per vehicle sold.

Despite its success, Carvana faces risks such as heavy debt, interest expenses, and external factors like used car prices and consumer confidence. Trading at a high price-to-sales ratio of 2.3, some view Carvana’s stock as expensive. Long-term financial troubles also pose concerns.

The Motley Fool Stock Advisor did not include Carvana in their top 10 stocks to buy now, citing risks and uncertainties. Their historical recommendations have yielded significant returns, outperforming the S&P 500. Consider joining Stock Advisor for more investment opportunities.



Read more at Yahoo Finance: Up 2,000% in 2 Years, Is Carvana a No-Brainer Stock to Buy Hand Over Fist With $500 Right Now?