Carvana's Trading Volume Drops 46.88% to $546 Million, Ranked 148th Despite Stock Price Rise

On March 28, 2025, Carvana (CVNA) experienced a significant decline in trading volume, with a total of $546 million in shares traded, marking a 46.88% decrease from the previous day. This placed Carvana at the 148th position in terms of trading volume for the day. Despite this, the stock price of Carvana rose by 0.23%.

Carvana, an e-commerce platform specializing in the buying and selling of used cars in the United States, has shown resilience in the face of market challenges. The company's recent financial performance has been a mix of growth and setbacks. In 2024, Carvana's revenue reached $13.67 billion, reflecting a 26.94% increase from the previous year. However, earnings took a hit, decreasing by 53.33% to $210 million. This financial performance has led to a varied outlook among analysts, with 18 analysts giving an average rating of "Buy" and a 12-month stock price forecast of $260.89, indicating a potential 27.63% increase from the current price.

Carvana's strategic shift from a growth-at-all-costs approach to a focus on profitable growth has been noted by industry observers. The company achieved positive Adjusted EBITDA and significant positive unit economics by the end of 2024. This strategic pivot has been well-received, with some analysts suggesting that Carvana is well-positioned to dominate the market despite competition from giants like Amazon. The company's strong Q4 performance, which included record net income and revenue growth, has further bolstered this optimistic view.

Carvana's recent pullback in stock price has been seen as a prime entry point for long-term investors. The company has shown significant growth in units sold, revenue, and gross profit while reducing costs and debt. This restructuring has led to positive financial metrics and a robust platform, making Carvana an attractive option for investors looking for long-term growth.

Despite market concerns over tariffs and high valuations, Carvana's 4Q24 earnings report showed strong retail unit sales and higher gross profits per unit. The company's platform metrics have improved, and it has managed to maintain a positive outlook despite external headwinds. Carvana's CEO, Ernie Garcia, has emphasized the company's focus on long-term growth, taking into consideration factors such as tariffs and inflation.

Carvana's stock price has seen volatility, with a decline of approximately 6% year-to-date after a strong gain earlier in the year. However, the company's financial performance and strategic initiatives have positioned it for future growth. Analysts have noted that Carvana's stock has significant value creation potential ahead, with predictions of market share gains and continued growth in the used car market.