Carvana Stock: Watch These Price Levels as It Surges!

Ladies and gentlemen, buckle up! We're diving headfirst into the wild world of Carvana, the online used car retailer that's been making waves in the stock market. This isn't your grandpa's car dealership—Carvana is the Taylor Swift of the automotive industry, and its stock is ON FIRE! But before you jump in, let's talk about the price levels you need to watch.

First things first, Carvana's stock has been on a tear. We're talking about a 284% spike in 2024 alone! The company reported a net income of $48 million for the second quarter of 2024, with an adjusted EBITDA of $355 million. That's right, folks—Carvana is printing money like the Federal Reserve on a printing spree!

But here's the thing: Carvana's valuation is through the roof. We're talking about a price-to-sales (P/S) ratio of 2.22, which is 102% higher than the last 4 quarters average of 1.1. That's a premium, folks—a big, fat premium. And while that might make your heart race, it also means there's a lot of risk involved.



Now, let's talk about those price levels. Carvana's stock has been trading in a range, and you need to pay attention to these key levels:

1. Support Level: $180.00. This is the level where the stock found support on March 20, 2025. If the stock dips below this level, it could be a sign of trouble. But if it holds, it's a buying opportunity!

2. Resistance Level: $224.46. This is the current price level, and it's a key resistance point. If the stock breaks above this level, it could be headed for the moon! But if it fails to break through, it could be a sign of a correction.

3. All-Time High: $292.84. This is the 52-week high, and it's a level that Carvana's stock has yet to reach again. If the stock can break through this level, it could be a sign of a new bull market. But if it fails, it could be a sign of a top.

Now, let's talk about the risks. Carvana's business model relies heavily on loan sales to third parties, largely in the risky subprime and deep subprime space. That's a recipe for disaster, folks. And with used vehicle prices declining and subprime auto loan delinquencies rising, Carvana's financial performance could take a hit.

But here's the thing: Carvana's stock is a high-risk, high-reward play. If you're willing to take on the risk, there's potential for significant returns. But if you're risk-averse, you might want to stay away.

So, what's the bottom line? Carvana's stock is surging, and it's a high-risk, high-reward play. Watch those price levels, and be prepared to act fast. This is a no-brainer, folks—Carvana is the next big thing in the automotive industry, and its stock is a must-own for any growth-oriented portfolio!



But remember, folks—this is a high-risk play. Don't put all your eggs in one basket, and be prepared for volatility. The market is a fickle beast, and Carvana's stock could be a wild ride. But if you're willing to take on the risk, there's potential for significant returns. So, buckle up, and let's ride this wave to the moon!