Carvana’s Stock Surge and Market Recovery
Carvana (NYSE: CVNA) has seen its stock transform dramatically over the past few years, rising from an all-time low of $3.72 on December 27, 2022, to a record high of $478.45 on January 22, 2026. This resurgence follows a significant recovery marked by rising profits and inclusion in the S&P 500. The value of a $10,000 investment at its lowest point would have inflated to approximately $1.29 million in just over three years, though it currently trades at around $310.
Between 2020 and 2025, Carvana’s units sold doubled from 244,111 to 596,641, and revenue surged from $5.6 billion to $20.3 billion. Adjusted EBITDA margins improved from negative 4.6% to positive 11%. Despite facing growth challenges in 2022 and 2023 due to rising interest rates and market saturation, projections indicate that Carvana’s revenue and adjusted EBITDA will grow at compound annual growth rates (CAGRs) of 26% and 28%, respectively, from 2025 to 2028.
Carvana aims to sell at least 3 million cars annually by 2030-2035, targeting adjusted EBITDA margins of around 13.5%. With an enterprise value of $47 billion, its stock is trading at a relatively low multiple of 16 times this year’s adjusted EBITDA, suggesting potential as a long-term investment.
