Carvanas business model is to take out the "middlemen" of car dealerships and permit online order and sales of cars (new and used – any type).
CVNA has had 8 consecutive excellent quarters, and the CEO purposefully underforcasts just how stellar their growth is/will be. Their next earnings is 29Oct, the same day as the fed rate cut (expected). This will generate a lot of hype, and if CVNA kill it again, they should easily exceed $420. Even if they have an underwhelming earnings, the run up should be sick.
FYI – last quarter, after earnings they hit $413.
Looking at their car sales:
"Carvana's (CVNA) most recent quarterly car sales were 143,280 in Q2 2025, marking an all-time record for the company and a 41% increase year-over-year. Prior to that, they sold 133,898 vehicles in Q1 2025 and 114,379 in Q4 2024.
Q2 2025: 143,280 retail units sold
Q1 2025: 133,898 retail units sold
Q4 2024: 114,379 retail units sold"
Right now, CVNA is trading in the 330s, impacted by the recent dip. ALL the market researchers have a buy, some with target prices in the high 400s.
Rate cuts will be excellent for their 2025/2026 growth, and it simply isnt reflected by a 330 share price.
Watch this folks, its running straight back to 400 this week (390 at a minimum) and Monday is about to see some serious buying pressure.
Carvana (CVNA) about to run staight back to $400 this week.
byu/No_Smile821 instocks
Posted by No_Smile821
5 Comments
It’s trading at 82X earnings. That seems high to me.
What makes you think they have a lot of room to grow beyond 82X earnings price?
Idk man, that’s not what the chart is saying. I don’t doubt that it makes a new high but this week is a bold assumption
Probably Trumped anyway
What about the wild number of people defaulting on car loans in the US and UK? I’m sure you contemplated that, what are your thoughts?
Yeah im probably buying. Rate cuts + earnings + exaggerated dip = bullish for me