Carvana Co. (CVNA) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
Zacks.com users have recently been watching Carvana (CVNA) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Carvana stock backed into reverse on Thursday.
Carvana (CVNA) stock has dropped by 24.4% in under a month, declining from $478.45 on January 22, 2026, to $361.53 currently. What lies ahead?
Carvana stock backed into reverse on Thursday.
Carvana is rated a "Buy," with shares seen as undervalued given its long-term earnings growth trajectory despite recent volatility. Q4 delivered record revenue and retail units sold, but margins dipped, and a lack of guidance pressured the stock, triggering a 14% decline. Management targets 3 million annual retail units and a 13.5% adjusted EBITDA margin by 2030–2035, with sequential growth expected in Q1.
CVNA crushes Q4 estimates as revenues jump 58% on surging retail and wholesale unit sales and projects strong EBITDA growth in 2026.
Carvana has seen growth and profitability slow, making its premium valuation hard to justify after recent earnings. Q4 Adjusted EBITDA margin dropped to 9.1%, raising doubts about the sustainability of double-digit margins and long-term targets. Forward guidance is vague, with management projecting growth but lacking specificity, fueling investor skepticism.
Wedbush Securities maintained its 'outperform' rating on Carvana Co. (NYSE:CVNA) but cut its 12-month price target to $425 from $500 following below-par fourth quarter results, which prompted a 9% fall in the shares after hours. Fourth-quarter revenue of $5.6 billion from the car retailer rose 58% year on year and came in around 7% ahead of consensus expectations.
Wall Street Breakfast Podcast: Carvana Drops Despite Higher Sales
Carvana is standing out after reporting record Q4 and full-year results yesterday evening and seeing its stock spike 3% in Wednesday's trading session.
Investors were looking for answers during Carvana's fourth quarter 2025 earnings call Wednesday (Feb. 18). And while they didn't find them, the absence of a clear answer was, for many, answer enough.