Five Months Later: Analyzing the Pros, Cons, and Risks of Hertz's Partnership with Amazon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy CVNA?
Source: Marketbeat
Hertz's Stock Performance: Hertz Global Holdings has seen a significant decline in its stock value, with shares down over 79% in the past five years, including a nearly 43% loss since reaching a one-year high in April 2025.
Partnership with Amazon: The company has entered a strategic partnership with Amazon to sell used cars online, aiming to improve sales and provide customers with a more convenient purchasing experience.
Financial Challenges: Hertz has faced substantial financial difficulties, including a massive net loss in 2024 and increasing depreciation costs, which have raised concerns among investors regarding the company's long-term viability.
Analyst Ratings: While Amazon has received a favorable "Buy" rating from analysts, Hertz has been assigned a "Reduce" rating, reflecting a lack of confidence in its recovery and growth potential compared to its competitors.
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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: 294.180
Low
395.00
Averages
497.94
High
550.00
Current: 294.180
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. The Company 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 Reports 58% Revenue Surge in Q4 2025
- Significant Revenue Growth: Carvana's Q4 2025 revenue surged 58% year-over-year to $5.6 billion, driven by a 43% increase in retail units sold, exceeding 163,000, indicating strong demand and business expansion in the used car market.
- Net Income Surge: The company reported a net income of $951 million for Q4, positively impacted by approximately $685 million in non-cash tax benefits, reflecting management's confidence in future profitability by releasing the valuation allowance on deferred tax assets.
- Profitability Fluctuations: Although adjusted EBITDA improved to $511 million from $359 million year-over-year, the EBITDA margin narrowed to 9.1% from 11.3% in Q3, indicating potential pressures on profitability that may affect investor sentiment.
- High Valuation Risks: With a price-to-earnings ratio of 33, Carvana's stock remains highly valued despite a 35% drop this year, necessitating caution from investors regarding potential demand fluctuations amid macroeconomic uncertainties.
See More
Carvana's Stock Soars 4,300%: Future Growth Potential
- Outstanding Market Performance: Carvana's stock has surged approximately 4,300% over the past three years, significantly outperforming the S&P 500's 70% gain, highlighting its strong growth potential in the used car market and attracting investor interest.
- Margin Improvement: Despite higher-than-expected reconditioning costs in Q4 2025, if Carvana can leverage data-driven software to streamline operations, it is expected to further enhance margins, boosting investor confidence.
- Industry Consolidation Trend: As the second-largest used car retailer in the U.S., Carvana holds only 1.6% of the market, yet its e-commerce platform positions it favorably for the impending industry consolidation, potentially expanding its market share.
- Future Growth Opportunities: Carvana's operational efficiencies and industry consolidation are set to drive high growth in the future; although investors may have missed earlier gains, substantial growth potential remains on the horizon.
See More
Carvana Shares Plunge 35% Despite Record Earnings Report
- Significant Revenue Growth: Carvana's fourth-quarter revenue surged 58% year-over-year to $5.6 billion, driven by a 43% increase in retail units sold, exceeding 163,000, indicating strong market demand and a solid business foundation.
- Profit Signal: Despite reporting a net income of $951 million in Q4, Carvana's results included a $685 million non-cash benefit, reflecting management's confidence in future profitability by releasing the valuation allowance against deferred tax assets.
- Profitability Pressure: While revenue growth is robust, Carvana's adjusted EBITDA stood at $511 million, with the EBITDA margin narrowing from 11.3% in Q3 to 9.1%, highlighting profitability pressures and investor concerns regarding its valuation.
- High Valuation Risks: With a price-to-earnings ratio of 33, Carvana's shares remain expensive even after a 35% drop, necessitating caution among investors regarding future growth expectations, especially amid macroeconomic uncertainties.
See More
Market Capitalization Comparison: Datadog vs Carvana
- Market Cap Comparison: Datadog Inc (Ticker: DDOG) has a market capitalization of $43.09 billion, while Carvana Co (Ticker: CVNA) stands at $41.56 billion, highlighting their relative size differences in the market, which influences investor valuation assessments.
- Investor Misconceptions: Many novice investors mistakenly judge company value solely based on stock price, but market capitalization provides a more accurate basis for comparison, helping investors avoid erroneous investment decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also determines which mutual funds and ETFs may invest in these stocks, particularly as large funds tend to favor companies with market caps exceeding $10 billion.
- Stock Price Fluctuations: At Thursday's close, DDOG's stock price fell by approximately 1%, while CVNA's stock price rose by about 1.3%, reflecting differing market reactions to the short-term performance of these two companies.
See More
Carvana's Comeback: From Bankruptcy Brink to Profit Growth
- Profitability Improvement: Carvana has successfully reversed its unprofitable growth strategy, significantly enhancing margins, with fourth-quarter gross profit per unit at $6,427, despite a $244 decline from last year, indicating a strong trajectory towards profitability.
- Market Share Expansion: As the second-largest used car retailer in the U.S., Carvana currently holds only 1.6% of the industry market share, with significant potential for growth through industry consolidation, especially as competition intensifies between traditional retailers and e-commerce platforms.
- Operational Efficiency Optimization: The company identified that if all production locations had per-unit costs aligned with the top quartile, fourth-quarter reconditioning costs could have been $220 lower per unit, presenting a critical opportunity for margin enhancement, particularly through the application of data-driven software.
- Strategic Acquisition Moves: Carvana's recent acquisition of six Stellantis dealerships not only opens avenues for new car sales but also enhances trade-in inventory and parts service revenue with higher margins, further solidifying its competitive advantage in the market.
See More
Carvana's Financial Recovery and Profit Outlook
- Stock Surge: Carvana's stock price has soared 4,300% over the past three years, significantly outperforming the S&P 500's 70% gain, reflecting investor confidence in its profitability and stable growth, indicating a bullish outlook for its future performance.
- Record Net Income: In its fourth-quarter report, Carvana announced a record net income of $1.895 billion for the year, with $685 million of this gain attributed to the release of its valuation allowance on deferred tax assets, marking a significant improvement in profitability and boosting investor confidence.
- Tax Asset Release: Management's belief that the company will utilize its past deferred tax assets signals the end of a pessimistic view on profitability, enhancing net income and positively impacting future cash flow, showcasing the success of the company's strategic transformation.
- Profit Growth Signal: Carvana's successful pivot towards profitability rather than reckless expansion is evident, as it turned a $10,000 investment into over $430,000 in three years, further solidifying its competitive position in the used car market and attracting more investor interest.
See More
Carvana Reports 58% Revenue Surge in Q4 2025
- Significant Revenue Growth: Carvana's Q4 2025 revenue surged 58% year-over-year to $5.6 billion, driven by a 43% increase in retail units sold, exceeding 163,000, indicating strong demand and business expansion in the used car market.
- Net Income Surge: The company reported a net income of $951 million for Q4, positively impacted by approximately $685 million in non-cash tax benefits, reflecting management's confidence in future profitability by releasing the valuation allowance on deferred tax assets.
- Profitability Fluctuations: Although adjusted EBITDA improved to $511 million from $359 million year-over-year, the EBITDA margin narrowed to 9.1% from 11.3% in Q3, indicating potential pressures on profitability that may affect investor sentiment.
- High Valuation Risks: With a price-to-earnings ratio of 33, Carvana's stock remains highly valued despite a 35% drop this year, necessitating caution from investors regarding potential demand fluctuations amid macroeconomic uncertainties.
See More
Carvana's Stock Soars 4,300%: Future Growth Potential
- Outstanding Market Performance: Carvana's stock has surged approximately 4,300% over the past three years, significantly outperforming the S&P 500's 70% gain, highlighting its strong growth potential in the used car market and attracting investor interest.
- Margin Improvement: Despite higher-than-expected reconditioning costs in Q4 2025, if Carvana can leverage data-driven software to streamline operations, it is expected to further enhance margins, boosting investor confidence.
- Industry Consolidation Trend: As the second-largest used car retailer in the U.S., Carvana holds only 1.6% of the market, yet its e-commerce platform positions it favorably for the impending industry consolidation, potentially expanding its market share.
- Future Growth Opportunities: Carvana's operational efficiencies and industry consolidation are set to drive high growth in the future; although investors may have missed earlier gains, substantial growth potential remains on the horizon.
See More
Carvana Shares Plunge 35% Despite Record Earnings Report
- Significant Revenue Growth: Carvana's fourth-quarter revenue surged 58% year-over-year to $5.6 billion, driven by a 43% increase in retail units sold, exceeding 163,000, indicating strong market demand and a solid business foundation.
- Profit Signal: Despite reporting a net income of $951 million in Q4, Carvana's results included a $685 million non-cash benefit, reflecting management's confidence in future profitability by releasing the valuation allowance against deferred tax assets.
- Profitability Pressure: While revenue growth is robust, Carvana's adjusted EBITDA stood at $511 million, with the EBITDA margin narrowing from 11.3% in Q3 to 9.1%, highlighting profitability pressures and investor concerns regarding its valuation.
- High Valuation Risks: With a price-to-earnings ratio of 33, Carvana's shares remain expensive even after a 35% drop, necessitating caution among investors regarding future growth expectations, especially amid macroeconomic uncertainties.
See More
Market Capitalization Comparison: Datadog vs Carvana
- Market Cap Comparison: Datadog Inc (Ticker: DDOG) has a market capitalization of $43.09 billion, while Carvana Co (Ticker: CVNA) stands at $41.56 billion, highlighting their relative size differences in the market, which influences investor valuation assessments.
- Investor Misconceptions: Many novice investors mistakenly judge company value solely based on stock price, but market capitalization provides a more accurate basis for comparison, helping investors avoid erroneous investment decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also determines which mutual funds and ETFs may invest in these stocks, particularly as large funds tend to favor companies with market caps exceeding $10 billion.
- Stock Price Fluctuations: At Thursday's close, DDOG's stock price fell by approximately 1%, while CVNA's stock price rose by about 1.3%, reflecting differing market reactions to the short-term performance of these two companies.
See More
Carvana's Comeback: From Bankruptcy Brink to Profit Growth
- Profitability Improvement: Carvana has successfully reversed its unprofitable growth strategy, significantly enhancing margins, with fourth-quarter gross profit per unit at $6,427, despite a $244 decline from last year, indicating a strong trajectory towards profitability.
- Market Share Expansion: As the second-largest used car retailer in the U.S., Carvana currently holds only 1.6% of the industry market share, with significant potential for growth through industry consolidation, especially as competition intensifies between traditional retailers and e-commerce platforms.
- Operational Efficiency Optimization: The company identified that if all production locations had per-unit costs aligned with the top quartile, fourth-quarter reconditioning costs could have been $220 lower per unit, presenting a critical opportunity for margin enhancement, particularly through the application of data-driven software.
- Strategic Acquisition Moves: Carvana's recent acquisition of six Stellantis dealerships not only opens avenues for new car sales but also enhances trade-in inventory and parts service revenue with higher margins, further solidifying its competitive advantage in the market.
See More
Carvana's Financial Recovery and Profit Outlook
- Stock Surge: Carvana's stock price has soared 4,300% over the past three years, significantly outperforming the S&P 500's 70% gain, reflecting investor confidence in its profitability and stable growth, indicating a bullish outlook for its future performance.
- Record Net Income: In its fourth-quarter report, Carvana announced a record net income of $1.895 billion for the year, with $685 million of this gain attributed to the release of its valuation allowance on deferred tax assets, marking a significant improvement in profitability and boosting investor confidence.
- Tax Asset Release: Management's belief that the company will utilize its past deferred tax assets signals the end of a pessimistic view on profitability, enhancing net income and positively impacting future cash flow, showcasing the success of the company's strategic transformation.
- Profit Growth Signal: Carvana's successful pivot towards profitability rather than reckless expansion is evident, as it turned a $10,000 investment into over $430,000 in three years, further solidifying its competitive position in the used car market and attracting more investor interest.
See More
