Stock Price & Analysis

Based on the provided data and current market conditions, here's a concise analysis of CVNA:

Technical Analysis

The stock is showing strong momentum with RSI at 63.16, indicating bullish sentiment without being overbought. The stock closed at $243.12 on January 23, 2025, with a significant regular market gain of +3.88% .

Recent Price Action

• Current price: $242.76
• Key Fibonacci levels:
  • Resistance: $250.87 (R2)
  • Support: $193.72 (S1)
• Trading above both 20-day SMA ($211.46) and 60-day SMA ($231.79), indicating strong upward momentum

Analyst Sentiment Recent analyst actions have been notably positive:

• Citigroup upgraded to Strong Buy with $277 PT (40.72% upside)
• RBC Capital upgraded to Buy with $280 PT (41.16% upside)
• Needham reiterated Strong Buy with $330 PT (66.37% upside)

Risk Factors A recent short-seller report from Hindenburg Research has created some volatility, but multiple Wall Street analysts have defended the stock. The company's renewed $4 billion agreement with Ally Financial demonstrates strong financial partnerships.

Conclusion Based on technical strength, positive analyst sentiment, and strong institutional support, CVNA appears positioned for further upside. The stock is showing momentum above key moving averages with multiple price targets suggesting significant upside potential.

Based on the provided data and recent market activity, here's the analysis for CVNA's price prediction in 2025:

CVNA is currently trading at $243.12 with strong momentum, but faces significant headwinds. The stock price prediction for 2025 is $275-300, driven by the recent $4 billion automotive finance receivables commitment from Ally Bank through January 2026. However, Hindenburg Research's recent short report alleging accounting manipulation and concerns about loan sales to undisclosed related parties creates downside risk.

The technical indicators show RSI at 63.16 and positive MACD of 0.79, suggesting continued upward momentum but approaching overbought territory. The Fibonacci resistance levels at $272.70 provide a reasonable price target ceiling.

The S1 support level for CVNA Stock is $195.12 ,The R1 resistant level for CVNA Stock is $239.51.

As of the end of day on 2025-01-24, the price of CVNA Stock was $240.31.

The target price for CVNA Stock according to analyst rating is 261.00, with the highest price target at 330.00 and the lowest at 185.00. Analysts have a Moderate Buy rating on CVNA Stock overall.

The market cap of CVNA is $49.9B.

Based on the provided data and recent analyst reports, here's a comprehensive analysis of CVNA's valuation:

Valuation Analysis CVNA's current valuation metrics show concerning signs of overvaluation:

• P/S ratio of 2.04 (Q3 2024)
• EV/EBITDA of 40.31 (Q3 2024)
• No dividend yield

Financial Performance

• Revenue growth has been steady: $3.06B (Q1) → $3.41B (Q2) → $3.66B (Q3 2024)
• Net income improved: $28M (Q1) → $18M (Q2) → $85M (Q3 2024)
• Gross margin expanded: 19.31% → 20.97% → 22.08%

Recent Price Action & Technical Analysis

Key Concerns:

1. Extremely high debt levels with $5.72B in total debt (Q3 2024)
2. Debt to equity ratio remains concerning at 1998.6% (Q3 2024)
3. Recent Hindenburg Research report highlighted potential accounting irregularities and undisclosed related-party transactions

Analyst Sentiment Recent analyst actions show mixed opinions:

• Citigroup upgraded to Strong Buy with $277 PT (Jan 8, 2025)
• RBC Capital upgraded to Buy with $280 PT (Jan 7, 2025)
• Wells Fargo maintained Buy but lowered PT to $275 (Jan 6, 2025)

Conclusion: CVNA appears significantly overvalued at current levels considering:

• Unsustainable debt levels
• Questionable accounting practices
• High valuation multiples despite modest profitability
• Recent short-seller concerns

The stock's dramatic rise appears driven more by speculation than fundamental improvements, making it vulnerable to significant downside risk.

Carvana Co. is a holding company. The Company operates an e-commerce platform for buying and selling used cars. On the Company's platform, consumers can research and identify a vehicle, inspect it using its 360-degree vehicle imaging technology, obtain financing and warranty coverage, purchase the vehicle, and schedule delivery or pick-up, all from their desktop or mobile devices. It also provides automated vehicle valuations for buying vehicles from customers with or without a retail purchase, automated financing, vehicle service contracts (VSC), auto insurance, GAP waiver coverage, limited warranty, and other ancillary products. It offers pick-up and delivery options, including pick-up at its vending machines or hubs, and as soon as same day deliveries, depending on the market. The Company's in-house customer advocates are available to answer customer questions that arise throughout the process.

Based on the available data and analyst projections, here's the 2030 price prediction for CVNA:

CVNA's stock price is projected to reach $350-400 by 2030, driven by continued market share gains in the used car retail space and sustained operational improvements. The company's successful turnaround in profitability and operational structure since 2022, coupled with Citi's positive outlook on their retail unit sales growth and gross profit improvements, supports this bullish long-term target. The recent upgrade by Citi with a price target of $277 demonstrates growing institutional confidence in CVNA's business model and execution capabilities.

CVNA has a total of 13700 employees.