Carvana Stock Surges 7% in Three Days, Ranks 95th in Market Volume

Carvana (CVNA) shares rose 2.89% on May 27, 2025, marking the third consecutive day of gains, with a total increase of 7.13% over the past three days. The company's trading volume reached $96.5 million, placing it 95th in the day's stock market rankings.

Carvana's recent stock performance has been driven by favorable dynamics in the used auto market and improved unit economics, thanks to aggressive cost-cutting measures. The company's turnaround began with disciplined leadership, which implemented cost-cutting measures and successfully restructured debt. This provided Carvana with the necessary breathing room to focus on operational improvements.

Carvana has made significant strides in optimizing its business operations. The company has enhanced its reconditioning process, reduced transportation costs, and expanded its wholesale segment. By optimizing network coverage, offering more finance and ancillary products, and leveraging advanced technology, Carvana has seen substantial traction. Additionally, the company has made its advertising more efficient, driving demand at a lower cost.

Carvana's gross profit per unit, a critical metric for auto retailers, has improved significantly. In the last reported quarter, the company's total gross profit per unit rose by 8%, indicating better unit economics. Carvana is focused on driving more adjusted EBITDA per unit, achieving a record $488 million in adjusted EBITDA in the first quarter of 2025, more than double the amount from the prior year. This makes Carvana the most profitable public car dealer by adjusted EBITDA margin at 11.5%, nearly triple that of its peers.