The online used-car retailer's stock has gained nearly 50% over a 12-day winning streak, and is aiming for an all-time high.
Carvana may have staged a comeback for the ages.
Shares of Carvana (NYSE: CVNA) jumped 10% in pre-market trading on December 9, 2025, following news that the company will join the S&P 500 on December 22.
Carvana (NYSE: CVNA) shares are soaring following a major catalyst that has thrust the online used-car retailer back into Wall Street's spotlight.
The S&P 500 large-cap stock index undergoes quarterly rebalances to reflect evolving market conditions.
Carvana and two other companies will join the S&P 500 in about two weeks, S&P Dow Jones Indices said late Friday — dashing the hopes of those investors who expected bigger tech names or a crypto giant to get the honors this time around.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
UBS has initiated coverage of Carvana Co. (NYSE:CVNA) with a “Buy” rating on Monday, arguing the online used-car retailer is positioned to capture outsized share in a fragmented market as consumers accelerate their shift to digital vehicle purchases. The brokerage set a 12-month price target of $450, about 20% above Carvana's last close at $374.50, and said its 2026–27 EBITDA forecasts sit roughly 5% above consensus.
Carvana's share of the used-car market is currently at about 1.5%. One analyst sees a path to much more than that in 10 years.
Carvana (CVNA) stands out as a major disruptor in the used car industry, achieving 40%+ unit growth despite a stagnant market. CVNA's national tech-enabled platform is rapidly gaining market share, with only 1.5% penetration in the fragmented U.S. used car market. Recent Q3 results highlight CVNA's strong execution, with 44% y/y retail unit sales growth and aggressive expansion of reconditioning capacity.
Shoppers are starting to draw the line on what they will pay for a new car, with some turning to used vehicles, taking on longer car loans and holding out for deals.
Carvana Co. (NYSE:CVNA) shares added more than 7% after the used car sales platform was upgraded to an ‘Outperform' rating by Wedbush analysts. The analysts also raised their 12-month price target to $400 from $380, arguing that the recent pullback in the stock presents a buying opportunity.