Carvana Co. experienced a price decline of 5.02%, hitting a 5-day low amid broader market strength, with the Nasdaq-100 up 0.52% and the S&P 500 up 0.31%.
This decline comes despite Carvana's impressive Q3 2025 performance, where the company reported a 44% year-over-year growth in retail car sales, reaching 155,941 units. The substantial revenue increase of 55% year-over-year to approximately $5.65 billion and a net income of $263 million indicate strong demand and effective management strategies, suggesting potential for future growth. However, the stock's recent performance reflects sector rotation as investors reassess valuations in the used car e-commerce market.
The implications of Carvana's strong sales growth and profitability are significant, as they highlight the company's ability to capture market share in a competitive environment. Despite the stock's decline, the positive financial results may bolster investor confidence moving forward.
Wall Street analysts forecast CVNA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVNA is 475.88 USD with a low forecast of 360.00 USD and a high forecast of 550.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
Wall Street analysts forecast CVNA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVNA is 475.88 USD with a low forecast of 360.00 USD and a high forecast of 550.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Buy
2 Hold
0 Sell
Strong Buy
Current: 477.720
Low
360.00
Averages
475.88
High
550.00
Current: 477.720
Low
360.00
Averages
475.88
High
550.00
JPMorgan
Overweight
maintain
$490 -> $510
2026-01-28
New
Reason
JPMorgan
Price Target
$490 -> $510
AI Analysis
2026-01-28
New
maintain
Overweight
Reason
JPMorgan raised the firm's price target on Carvana to $510 from $490 and keeps an Overweight rating on the shares as part of a Q4 earnings preview. The firm cites strong unit growth assumptions for the target boost. It expects Carvana to report a "solid beat and raise" in Q4, but reduced estimates slightly to reflect modestly lower pricing and slightly higher spending to factor in new vehicle franchise acquisitions.
Wells Fargo
David Lantz
Overweight
maintain
$500 -> $525
2026-01-27
New
Reason
Wells Fargo
David Lantz
Price Target
$500 -> $525
2026-01-27
New
maintain
Overweight
Reason
Wells Fargo analyst David Lantz raised the firm's price target on Carvana to $525 from $500 and keeps an Overweight rating on the shares. Late January and February Auto Service/eAuto prints screen mixed and Winter Storm Fern could drive near-term volatility. Wells sees a retail unit beat for Carvana with strong quarter-to-date.
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Barclays
John Babcock
Overweight
maintain
$465 -> $530
2026-01-21
Reason
Barclays
John Babcock
Price Target
$465 -> $530
2026-01-21
maintain
Overweight
Reason
Barclays analyst John Babcock raised the firm's price target on Carvana to $530 from $465 and keeps an Overweight rating on the shares. The firm adjusted targets in the auto retail group as part of its Q4 outlook. It broadly lowered estimates across the sector on "soft" auto sales unit pressures. However, trade checks suggest the used vehicle market has good momentum, the analyst tells investors in a research note.
Morgan Stanley
Andrew Percoco
Overweight
maintain
$450 -> $750
2026-01-08
Reason
Morgan Stanley
Andrew Percoco
Price Target
$450 -> $750
2026-01-08
maintain
Overweight
Reason
Morgan Stanley analyst Andrew Percoco maintained an Overweight rating and $450 price target on Carvana, but boosted its bull case on the stock to $750, noting that the company's acquisition of four new car dealerships in December signal to the firm that Carvana is "readily expanding" its total addressable market, or TAM, beyond used cars. Morgan Stanley added that Carvana's proprietary software and physical infrastructure can enable advancements in both autonomous vehicles and electric vehicles.
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.
