Optimist Fund had a strong second quarter in 2025, returning 39.2% compared to 11.3% for its benchmark. The fund focuses on underappreciated, market-leading businesses run by ambitious CEOs. Carvana Co. (NYSE:CVNA) was highlighted in the investor letter, showing impressive growth with plans for further expansion. The stock closed at $365.35 on September 15, 2025, with a market cap of $42.727 billion.

In the second quarter investor letter, Optimist Fund praised Carvana Co. (NYSE:CVNA) for its exceptional performance, including retail unit and revenue growth. Management has set a bold new long-term target for the company, indicating a strong trajectory and potential for growth. The fund sees Carvana as a compelling 5-year investment opportunity.

Despite the potential of Carvana Co. (NYSE:CVNA) as an investment, some believe other AI stocks offer greater upside potential with less downside risk. While 91 hedge fund portfolios held CVNA at the end of Q2, there are AI stocks that may be undervalued and stand to benefit from current trends. For more information, a free report on the best short-term AI stock is available.

Read more at Yahoo Finance: Here’s Why Carvana’s (CVNA) Management Reiterated Their Outlook