Markets Struggle with AI; Trump's Stance on Iran May Shift Dynamics and 5 Other Key Updates for Today.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy CVNA?
Source: Barron's
- Market Sentiment: Investors are grappling with uncertainties regarding the future of AI technologies, which is affecting market dynamics.
- Investment Challenges: The beginning of the year presents additional complexities for investors beyond just AI concerns.
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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: 361.530
Low
395.00
Averages
497.94
High
550.00
Current: 361.530
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 Shares Drop 21% Following Disappointing Earnings Report
- Carvana's Stock Performance: Shares of Carvana fell significantly in after-hours trading following the release of their quarterly results.
- Quarterly Results Overview: The company's financial report showed mixed results, contributing to the decline in stock value.
See More
Carvana Q4 Earnings Exceed Expectations with Strong Growth Metrics
- Net Income Surge: Carvana reported a Q4 net income of $951 million, reflecting a 58% year-over-year increase and surpassing market expectations by $340 million, indicating robust performance in retail unit sales and Adjusted EBITDA.
- Adjusted EBITDA Metrics: The company achieved an Adjusted EBITDA of $511 million with a margin of 9.1%, demonstrating significant progress in operational efficiency and profitability, thereby enhancing its competitive position in the market.
- 2025 Strategic Goals: Carvana is focused on three key objectives for 2025: substantial growth in retail units and Adjusted EBITDA, fundamental improvements in unit economics and customer experience, and the development of foundational capabilities to support sustainable growth.
- Future Outlook: Looking ahead to 2026, Carvana anticipates continued significant growth in both retail units sold and Adjusted EBITDA, particularly in Q1 2026, assuming stable market conditions, which will further solidify its leadership in the industry.
See More
Carvana Reports Q4 Revenue Exceeding Expectations Amid Profit Concerns
- Revenue Performance: Carvana reported Q4 revenue of $5.60 billion, surpassing Wall Street's expectations of $5.27 billion, indicating strong retail sales; however, the adjusted core profit of $511 million fell short of market forecasts, leading to diminished investor confidence.
- Price Target Cuts: Bank of America lowered its price target for Carvana from $460 to $400 while maintaining a 'Buy' rating, with analysts noting the lack of specific EBITDA guidance for 2026, which has weakened investor confidence in margin expansion despite management's qualitative growth projections.
- Market Sentiment Shift: Investor sentiment on Stocktwits shifted from 'bullish' to 'bearish', reflecting concerns over Carvana's massive debt and lack of 'real operating cash', with CVNA shares down 22% year-to-date, indicating a cautious outlook among retail traders.
- Allegations Rejected: Carvana dismissed allegations from Hindenburg Research, which claimed the company's turnaround was a 'mirage', asserting that the claims were inaccurate and misleading; nonetheless, market concerns regarding its financial health persist.
See More
Latest Rating Changes on Wall Street
- Nvidia Outlook Positive: Oppenheimer reiterates its outperform rating on Nvidia, anticipating sustained outsized growth in high-performance gaming, datacenter/AI, and autonomous driving, indicating strong market demand and future profitability potential.
- CIBC Rating Upgrade: Barclays upgrades CIBC from underweight to overweight, highlighting the bank's progress over the past two years with ROE expansion and consistent earnings performance, suggesting significant growth potential and investment appeal in the Canadian market.
- Credo Technology Buy Rating: Goldman Sachs initiates coverage of Credo Technology with a buy rating and a 12-month price target of $165, indicating a favorable risk/reward profile and confidence in the company's future growth.
- Chewy Rating Upgrade: Raymond James upgrades Chewy from market perform to outperform, noting an attractive EV/EBITDA of approximately 8x, combined with topline and margin opportunities in 2026, highlighting the stock's appeal.
See More
Carvana Reports Strong Q4 Sales Exceeding Expectations
- Strong Sales Performance: Carvana reported fourth-quarter revenue of $5.60 billion, surpassing analyst expectations of $5.26 billion, indicating robust market performance, although earnings per share of $4.22 may not meet estimates.
- Significant Year-over-Year Growth: In 2025, Carvana achieved a 43% year-over-year growth rate, delivering record unit economics while passing significant value back to customers through better selection, faster delivery times, and lower costs, enhancing customer satisfaction.
- Future Growth Expectations: The company anticipates significant growth in retail units sold and adjusted EBITDA in 2026, with sequential increases expected in the first quarter, indicating a strategic focus on driving profitable growth at scale.
- Analyst Target Adjustments: Following the earnings announcement, several analysts adjusted their price targets for Carvana, with BTIG lowering its target from $535 to $455, BofA Securities from $460 to $400, and Deutsche Bank from $600 to $519, reflecting a cautious outlook on the company's future performance.
See More
Walmart's Fiscal Outlook Falls Short of Expectations
- Walmart's Fiscal Outlook: Walmart anticipates net sales growth of only 3.5% to 4.5% and adjusted earnings per share of $2.75 to $2.85, falling short of analysts' expectations of $2.96, resulting in a 3.7% drop in stock price, reflecting market concerns about future growth.
- Hims & Hers Acquisition: Hims & Hers Health announced its acquisition of Australian digital health company Eucalyptus for up to $1.15 billion, leading to a nearly 7% increase in stock price, indicating a proactive strategy in expanding market presence and service offerings.
- Deere Earnings Beat: Deere reported first-quarter earnings of $2.42 per share on revenues of $8 billion, exceeding analyst expectations, which drove a 5.3% increase in stock price, showcasing its strong performance and profitability in the agricultural equipment sector.
- DoorDash Order Growth: DoorDash reported a 32% year-over-year increase in total orders for the fourth quarter, and despite missing overall earnings estimates, the stock surged 10%, highlighting its growth potential in the competitive food delivery market.
See More
Carvana Shares Drop 21% Following Disappointing Earnings Report
- Carvana's Stock Performance: Shares of Carvana fell significantly in after-hours trading following the release of their quarterly results.
- Quarterly Results Overview: The company's financial report showed mixed results, contributing to the decline in stock value.
See More
Carvana Q4 Earnings Exceed Expectations with Strong Growth Metrics
- Net Income Surge: Carvana reported a Q4 net income of $951 million, reflecting a 58% year-over-year increase and surpassing market expectations by $340 million, indicating robust performance in retail unit sales and Adjusted EBITDA.
- Adjusted EBITDA Metrics: The company achieved an Adjusted EBITDA of $511 million with a margin of 9.1%, demonstrating significant progress in operational efficiency and profitability, thereby enhancing its competitive position in the market.
- 2025 Strategic Goals: Carvana is focused on three key objectives for 2025: substantial growth in retail units and Adjusted EBITDA, fundamental improvements in unit economics and customer experience, and the development of foundational capabilities to support sustainable growth.
- Future Outlook: Looking ahead to 2026, Carvana anticipates continued significant growth in both retail units sold and Adjusted EBITDA, particularly in Q1 2026, assuming stable market conditions, which will further solidify its leadership in the industry.
See More
Carvana Reports Q4 Revenue Exceeding Expectations Amid Profit Concerns
- Revenue Performance: Carvana reported Q4 revenue of $5.60 billion, surpassing Wall Street's expectations of $5.27 billion, indicating strong retail sales; however, the adjusted core profit of $511 million fell short of market forecasts, leading to diminished investor confidence.
- Price Target Cuts: Bank of America lowered its price target for Carvana from $460 to $400 while maintaining a 'Buy' rating, with analysts noting the lack of specific EBITDA guidance for 2026, which has weakened investor confidence in margin expansion despite management's qualitative growth projections.
- Market Sentiment Shift: Investor sentiment on Stocktwits shifted from 'bullish' to 'bearish', reflecting concerns over Carvana's massive debt and lack of 'real operating cash', with CVNA shares down 22% year-to-date, indicating a cautious outlook among retail traders.
- Allegations Rejected: Carvana dismissed allegations from Hindenburg Research, which claimed the company's turnaround was a 'mirage', asserting that the claims were inaccurate and misleading; nonetheless, market concerns regarding its financial health persist.
See More
Latest Rating Changes on Wall Street
- Nvidia Outlook Positive: Oppenheimer reiterates its outperform rating on Nvidia, anticipating sustained outsized growth in high-performance gaming, datacenter/AI, and autonomous driving, indicating strong market demand and future profitability potential.
- CIBC Rating Upgrade: Barclays upgrades CIBC from underweight to overweight, highlighting the bank's progress over the past two years with ROE expansion and consistent earnings performance, suggesting significant growth potential and investment appeal in the Canadian market.
- Credo Technology Buy Rating: Goldman Sachs initiates coverage of Credo Technology with a buy rating and a 12-month price target of $165, indicating a favorable risk/reward profile and confidence in the company's future growth.
- Chewy Rating Upgrade: Raymond James upgrades Chewy from market perform to outperform, noting an attractive EV/EBITDA of approximately 8x, combined with topline and margin opportunities in 2026, highlighting the stock's appeal.
See More
Carvana Reports Strong Q4 Sales Exceeding Expectations
- Strong Sales Performance: Carvana reported fourth-quarter revenue of $5.60 billion, surpassing analyst expectations of $5.26 billion, indicating robust market performance, although earnings per share of $4.22 may not meet estimates.
- Significant Year-over-Year Growth: In 2025, Carvana achieved a 43% year-over-year growth rate, delivering record unit economics while passing significant value back to customers through better selection, faster delivery times, and lower costs, enhancing customer satisfaction.
- Future Growth Expectations: The company anticipates significant growth in retail units sold and adjusted EBITDA in 2026, with sequential increases expected in the first quarter, indicating a strategic focus on driving profitable growth at scale.
- Analyst Target Adjustments: Following the earnings announcement, several analysts adjusted their price targets for Carvana, with BTIG lowering its target from $535 to $455, BofA Securities from $460 to $400, and Deutsche Bank from $600 to $519, reflecting a cautious outlook on the company's future performance.
See More
Walmart's Fiscal Outlook Falls Short of Expectations
- Walmart's Fiscal Outlook: Walmart anticipates net sales growth of only 3.5% to 4.5% and adjusted earnings per share of $2.75 to $2.85, falling short of analysts' expectations of $2.96, resulting in a 3.7% drop in stock price, reflecting market concerns about future growth.
- Hims & Hers Acquisition: Hims & Hers Health announced its acquisition of Australian digital health company Eucalyptus for up to $1.15 billion, leading to a nearly 7% increase in stock price, indicating a proactive strategy in expanding market presence and service offerings.
- Deere Earnings Beat: Deere reported first-quarter earnings of $2.42 per share on revenues of $8 billion, exceeding analyst expectations, which drove a 5.3% increase in stock price, showcasing its strong performance and profitability in the agricultural equipment sector.
- DoorDash Order Growth: DoorDash reported a 32% year-over-year increase in total orders for the fourth quarter, and despite missing overall earnings estimates, the stock surged 10%, highlighting its growth potential in the competitive food delivery market.
See More
