Used Car Seller Carvana On Road To $15B Revenue By 2025 As Unit Growth Accelerates: BofA
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2024
0mins
Should l Buy CVNA?
Source: Benzinga
Analyst Rating and Market Position: BofA Securities analyst Michael McGovern has reinstated coverage on Carvana Co. with a Buy rating and a price target of $185, citing the company's strong position for long-term growth in the fragmented used car market.
Financial Projections: McGovern anticipates Carvana's revenue to reach $15.45 billion and EBITDA of $1.50 billion by 2025, slightly exceeding market estimates, with expectations of continued recovery in used car sales as interest rates decline.
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Analyst Views on CVNA
Wall Street analysts forecast CVNA stock price to rise
18 Analyst Rating
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 323.110
Low
395.00
Averages
497.94
High
550.00
Current: 323.110
Low
395.00
Averages
497.94
High
550.00
About CVNA
Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. The Company primarily acquires used vehicle inventory directly from customers, used car auctions, and wholesale used vehicle suppliers, including retail marketplace partners. Once it acquires a vehicle, the Company leverages its in-house logistics network or a vendor to transport the vehicle to one of its inspection and reconditioning centers (IRC) or auction locations with reconditioning capabilities, at which point the vehicle enters its inventory management system. It offers a mobile-optimized Website, where prospective retail car buyers can immediately begin browsing, researching, filtering, and identifying their vehicle of choice, where it offers an annotated virtual vehicle tour, which includes a 360-degree view of the interior and exterior of the actual vehicle. The Company also offers integrated financing using its loan origination platform.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Carvana Q4 Results Beat Estimates but Stock Declines
- Strong Sales Performance: Carvana reported $5.6 billion in sales for Q4, exceeding analyst expectations by $330 million and marking a 58% year-over-year increase, indicating enhanced competitiveness in the market despite stock price pressures from other factors.
- Robust Earnings: The company posted earnings per share of $4.22, significantly surpassing Wall Street's forecast of $1.13, demonstrating strong profitability; however, concerns over other profitability metrics have led to a decline in stock price.
- Adjusted EBITDA Miss: Carvana's adjusted EBITDA for Q4 was $511 million, falling short of the $535.7 million expected by analysts, with an adjusted EBITDA margin of 10.4%, raising investor doubts about the company's profitability.
- Related-Party Transaction Risks: A short report from Gotham City Research accused Carvana of overstating earnings through related-party transactions linked to businesses owned by CEO Ernie Garcia's family, raising concerns about financial transparency and potentially impacting investor confidence.
See More
Pomerantz LLP Investigates Carvana for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Carvana and its executives have engaged in securities fraud or other unlawful business practices, indicating significant legal risks that could undermine investor confidence.
- Earnings Overstatement Allegations: On January 28, 2026, Gotham City Research LLC issued a report alleging that Carvana's earnings for 2023-2024 are overstated by over $1 billion, revealing serious issues regarding the company's financial transparency.
- Stock Price Plunge Impact: Following the report's release, Carvana's stock price fell by $67.68, a decline of 14.17%, closing at $410.04 per share, reflecting market concerns about the company's financial health.
- Potential Legal Consequences: The investigation by Pomerantz LLP could lead to a class action lawsuit, and if the allegations are substantiated, it may have significant negative repercussions on Carvana's reputation and future operations.
See More
Carvana Q4 Results Beat Estimates but Stock Declines
- Strong Sales Performance: Carvana reported fourth-quarter sales of $5.6 billion, exceeding analyst expectations by $330 million and reflecting a 58% year-over-year increase, indicating robust market performance despite stock price pressures from other factors.
- Profitability Concerns: While the earnings per share of $4.22 significantly surpassed the market's forecast of $1.13, the adjusted EBITDA of $511 million fell short of the $535.7 million expected by analysts, raising concerns about the company's profitability and market confidence.
- Related-Party Transaction Allegations: A short report from Gotham City Research accused Carvana of overstating earnings through related-party transactions with businesses owned by CEO Ernie Garcia III's family, particularly highlighting the connections with DriveTime and Bridgecrest, which has raised investor scrutiny and could impact the company's reputation.
- Vague Forward Guidance: The forward guidance provided by Carvana alongside its Q4 report lacked specific details, as management committed to growth in retail units and adjusted EBITDA but failed to outline a clear strategic direction, leaving investors feeling uncertain about the company's future trajectory.
See More
Carvana CEO to Present at Morgan Stanley Conference
- Investor Conference Schedule: Carvana's Founder and CEO Ernie Garcia will present at the Morgan Stanley Technology, Media & Telecom Conference on March 2, 2026, showcasing the company's future strategies, which is expected to attract investor interest.
- Webcast Availability: The presentation will be accessible via a live webcast on Carvana's Investor Relations website, allowing investors to engage with the company and view a recorded replay post-event, enhancing transparency and communication.
- Customer Base Growth: Since its inception in 2013, Carvana has attracted over 4 million customers to its online car trading platform, demonstrating strong growth momentum in the automotive e-commerce sector and further solidifying its market position.
- Technology-Driven Business Model: Carvana leverages its unique technology and national infrastructure to provide a convenient online car buying experience, enabling customers to complete delivery or pickup on the same day, which enhances customer satisfaction and competitive edge.
See More
Carvana CEO to Present at Morgan Stanley Conference
- Investor Conference Schedule: Carvana's Founder and CEO Ernie Garcia will present at the Morgan Stanley Technology, Media & Telecom Conference on March 2, 2026, at 12:20 PM PT, showcasing the company's future growth strategies to attract investor interest.
- Webcast Availability: The presentation will be accessible via live webcast on Carvana's Investor Relations website, allowing global investors to watch in real-time, with an archived replay available post-presentation to ensure widespread information dissemination.
- Company Mission and Vision: Since its inception in 2013, Carvana has attracted over 4 million customers, aiming to transform the way people buy and sell cars through its leading automotive e-commerce platform, enhancing user experience and driving industry innovation.
- Technology-Driven Business Model: Carvana leverages its unique technology and national infrastructure to offer convenient online vehicle purchasing, selling, financing, and trading services, with same-day delivery or local pickup options, further solidifying its market leadership.
See More
Carvana Shares Down 30% Amidst Earnings Concerns
- Disappointing Earnings: Carvana's gross profit per retail unit fell from $6,916 to $6,562 in Q4 2024, with adjusted EBITDA at $511 million missing analyst expectations, contributing to a more than 30% drop in stock price since late January.
- Unclear Guidance: The company did not provide specific expectations for 2026, stating only that it anticipates significant growth in retail units sold and adjusted EBITDA, which has left investors feeling uneasy about future performance.
- Market Potential: Despite controlling just over 2% of the used car market, Carvana's sales of 596,641 retail units and 297,643 wholesale cars indicate strong ongoing demand, suggesting ample room for growth ahead.
- Growth Momentum: Carvana's Q4 revenue increased by 58% year-over-year with a 43% rise in retail units sold, and analysts expect this growth trend to continue through 2027, indicating that a renewed focus on its growth potential could lead to a stock recovery.
See More
Carvana Q4 Results Beat Estimates but Stock Declines
- Strong Sales Performance: Carvana reported $5.6 billion in sales for Q4, exceeding analyst expectations by $330 million and marking a 58% year-over-year increase, indicating enhanced competitiveness in the market despite stock price pressures from other factors.
- Robust Earnings: The company posted earnings per share of $4.22, significantly surpassing Wall Street's forecast of $1.13, demonstrating strong profitability; however, concerns over other profitability metrics have led to a decline in stock price.
- Adjusted EBITDA Miss: Carvana's adjusted EBITDA for Q4 was $511 million, falling short of the $535.7 million expected by analysts, with an adjusted EBITDA margin of 10.4%, raising investor doubts about the company's profitability.
- Related-Party Transaction Risks: A short report from Gotham City Research accused Carvana of overstating earnings through related-party transactions linked to businesses owned by CEO Ernie Garcia's family, raising concerns about financial transparency and potentially impacting investor confidence.
See More
Pomerantz LLP Investigates Carvana for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Carvana and its executives have engaged in securities fraud or other unlawful business practices, indicating significant legal risks that could undermine investor confidence.
- Earnings Overstatement Allegations: On January 28, 2026, Gotham City Research LLC issued a report alleging that Carvana's earnings for 2023-2024 are overstated by over $1 billion, revealing serious issues regarding the company's financial transparency.
- Stock Price Plunge Impact: Following the report's release, Carvana's stock price fell by $67.68, a decline of 14.17%, closing at $410.04 per share, reflecting market concerns about the company's financial health.
- Potential Legal Consequences: The investigation by Pomerantz LLP could lead to a class action lawsuit, and if the allegations are substantiated, it may have significant negative repercussions on Carvana's reputation and future operations.
See More
Carvana Q4 Results Beat Estimates but Stock Declines
- Strong Sales Performance: Carvana reported fourth-quarter sales of $5.6 billion, exceeding analyst expectations by $330 million and reflecting a 58% year-over-year increase, indicating robust market performance despite stock price pressures from other factors.
- Profitability Concerns: While the earnings per share of $4.22 significantly surpassed the market's forecast of $1.13, the adjusted EBITDA of $511 million fell short of the $535.7 million expected by analysts, raising concerns about the company's profitability and market confidence.
- Related-Party Transaction Allegations: A short report from Gotham City Research accused Carvana of overstating earnings through related-party transactions with businesses owned by CEO Ernie Garcia III's family, particularly highlighting the connections with DriveTime and Bridgecrest, which has raised investor scrutiny and could impact the company's reputation.
- Vague Forward Guidance: The forward guidance provided by Carvana alongside its Q4 report lacked specific details, as management committed to growth in retail units and adjusted EBITDA but failed to outline a clear strategic direction, leaving investors feeling uncertain about the company's future trajectory.
See More
Carvana CEO to Present at Morgan Stanley Conference
- Investor Conference Schedule: Carvana's Founder and CEO Ernie Garcia will present at the Morgan Stanley Technology, Media & Telecom Conference on March 2, 2026, showcasing the company's future strategies, which is expected to attract investor interest.
- Webcast Availability: The presentation will be accessible via a live webcast on Carvana's Investor Relations website, allowing investors to engage with the company and view a recorded replay post-event, enhancing transparency and communication.
- Customer Base Growth: Since its inception in 2013, Carvana has attracted over 4 million customers to its online car trading platform, demonstrating strong growth momentum in the automotive e-commerce sector and further solidifying its market position.
- Technology-Driven Business Model: Carvana leverages its unique technology and national infrastructure to provide a convenient online car buying experience, enabling customers to complete delivery or pickup on the same day, which enhances customer satisfaction and competitive edge.
See More
Carvana CEO to Present at Morgan Stanley Conference
- Investor Conference Schedule: Carvana's Founder and CEO Ernie Garcia will present at the Morgan Stanley Technology, Media & Telecom Conference on March 2, 2026, at 12:20 PM PT, showcasing the company's future growth strategies to attract investor interest.
- Webcast Availability: The presentation will be accessible via live webcast on Carvana's Investor Relations website, allowing global investors to watch in real-time, with an archived replay available post-presentation to ensure widespread information dissemination.
- Company Mission and Vision: Since its inception in 2013, Carvana has attracted over 4 million customers, aiming to transform the way people buy and sell cars through its leading automotive e-commerce platform, enhancing user experience and driving industry innovation.
- Technology-Driven Business Model: Carvana leverages its unique technology and national infrastructure to offer convenient online vehicle purchasing, selling, financing, and trading services, with same-day delivery or local pickup options, further solidifying its market leadership.
See More
Carvana Shares Down 30% Amidst Earnings Concerns
- Disappointing Earnings: Carvana's gross profit per retail unit fell from $6,916 to $6,562 in Q4 2024, with adjusted EBITDA at $511 million missing analyst expectations, contributing to a more than 30% drop in stock price since late January.
- Unclear Guidance: The company did not provide specific expectations for 2026, stating only that it anticipates significant growth in retail units sold and adjusted EBITDA, which has left investors feeling uneasy about future performance.
- Market Potential: Despite controlling just over 2% of the used car market, Carvana's sales of 596,641 retail units and 297,643 wholesale cars indicate strong ongoing demand, suggesting ample room for growth ahead.
- Growth Momentum: Carvana's Q4 revenue increased by 58% year-over-year with a 43% rise in retail units sold, and analysts expect this growth trend to continue through 2027, indicating that a renewed focus on its growth potential could lead to a stock recovery.
See More
