Carvana Stock Surges 2.63% in Two Days, Trading Volume Hits $11.36 Billion Ranking 52nd in Market Activity

Carvana (CVNA) shares rose 1.77% on May 19, 2025, marking the second consecutive day of gains, with a total increase of 2.63% over the past two days. The trading volume reached $11.36 billion, placing it 52nd in the day's market activity.

Carvana's recent surge in stock price can be attributed to its impressive first-quarter earnings report. The online used car retailer reported record financial results, with revenue hitting $4.23 billion and adjusted EBITDA reaching $488 million, both exceeding analysts' expectations. Retail unit sales soared by 46% year-over-year to a record 133,898 vehicles, driving strong profitability.

Net income stood at $373 million, representing an 8.8% margin, while the adjusted EBITDA margin climbed to 11.5%. The company also generated a healthy $205 million in free cash flow, exceeding forecasts. Analysts have responded positively to these results, with several firms raising their price targets for the stock, citing improved operational efficiency and expanding financing margins.

Looking ahead, Carvana anticipates continued momentum in the second quarter, projecting 138,000 units sold and $536 million in adjusted EBITDA. The company maintains its long-term goal of selling 3 million units annually with a 13.5% EBITDA margin, seeing substantial growth potential in the evolving online auto retail market.

Carvana’s business model centers on providing a seamless online platform for buying and selling used vehicles. This includes offering a wide selection of cars and convenient delivery options, often to customers’ doorsteps. This approach disrupts the traditional dealership model by offering a more streamlined and potentially less stressful car buying experience.