From Nasdaq, Inc.: 2025-05-04 04:50:00

Carvana (NYSE: CVNA) investors who held on or bought in during a rough patch in 2022 are now reaping huge rewards, with the stock up over 5,000% in just over two years. The company’s financial turnaround involved aggressive cost-cutting measures and a focus on cash flow positivity, leading to revenue growth of 27% in 2024 to $13.7 billion. While Carvana’s potential for growth in the used car marketplace remains high, its stock may already be overvalued, making it a risky investment choice at this time.

Despite Carvana’s solid financial footing, the stock’s potential for future growth may already be priced in, making it a risky investment choice at this time. The company’s focus on scaling its online marketplace for used cars offers a long runway for growth, but the stock’s current valuation may not justify the potential upside. With other high-growth stocks identified by the Motley Fool Stock Advisor team offering better investment opportunities, investors may want to consider alternative options for their portfolio.



Read more at Nasdaq, Inc.: Should You Buy Carvana Stock Right Now?