Carvana Surges to 43rd in Trading Volume as Earnings Beat and Institutional Buying Drive AI-Fueled Optimism

On August 25, 2025, Carvana (CVNA) traded $1.26 billion in volume, ranking 43rd in market activity, with shares rising 1.20%. The stock’s performance reflects a mix of earnings momentum and strategic institutional interest. A recent earnings beat of $1.28/share and a 41.9% year-over-year revenue surge underscored operational strength, while Northern Trust and Vanguard increased stakes by 5.4% and 9.7%, respectively. These moves highlight confidence in Carvana’s AI-driven logistics and digital-first model, despite regulatory and competitive headwinds.

Carvana’s rally occurred amid a broader sector slowdown, with Amazon’s Hertz partnership signaling potential disruption in the used-car market. However, Carvana’s expanded access to ADESA inventory and its Zacks Growth Score of A—projecting 218.9% earnings growth for FY2025—position it to counter competition. Institutional buying and a 107.3% average earnings surprise further reinforce its appeal, though valuation concerns persist, with a forward P/S ratio of 3.47, above the industry average of 2.29.

Technical indicators suggest a short-term bullish bias, with the 30-day moving average ($347.80) acting as support and the 200-day average ($265.79) as a long-term benchmark. Options activity, including high-leverage calls like CVNA20250829C370 and CVNA20250829C375, reflects aggressive positioning for a potential breakout. However, a breakdown below $341.47 could trigger defensive strategies. The Defiance Daily Target 2X Long CVNA ETF (CVNX) also offers leveraged exposure to a broader rally.

A backtest of buying CVNA after a 3% intraday increase from 2022 to 2025 yielded a 63.78% return, underperforming the benchmark’s 81.52%. The strategy’s CAGR of 10.59% and a Sharpe ratio of 0.09 indicate low risk but limited reward, with no maximum drawdown recorded. This suggests the approach may lack robustness in volatile market conditions.