Carvana Stock Soars 10.17% on Q1 Earnings Surge
Carvana's stock price surged 10.17% today, marking its second consecutive day of gains, with a total increase of 10.32% over the past two days. The share price reached its highest level since November 2021, with an intraday gain of 13.29%.
The strategy of buying CVNA shares after they reached a recent high and holding for 1 week yielded solid results over the past 5 years. The annualized return was 16.25%, slightly underperforming the market benchmark by 3.58 percentage points. With a peak market capitalization of $26.28 billion and a closing price of $195.60, the investment's value grew from $1,000 to $2,230.16, highlighting the impact of compound returns over time.Carvana's recent stock surge can be attributed to its strong performance in the first quarter of 2025. The company reported a 46% increase in vehicle sales, reaching 133,898 units. This significant growth in sales contributed to a revenue of $4.23 billion, marking a 38% year-over-year growth. This impressive financial performance exceeded expectations, resulting in record net income and adjusted EBITDA, and boosting investor confidence.
Analysts have maintained a positive outlook on Carvana, with a reiterated Buy rating and a price target of $340.00. This reflects expectations of sustained growth in the company's operations and strategic initiatives. The strong financial performance and positive analyst outlook have contributed to the recent surge in Carvana's stock price, indicating a bullish sentiment among investors.
