Shares surge to record highs as investors reward the company’s resilient online model and long-term momentum
Carvana Co. (CNVA) is on the brink of making Wall Street history. The online used-car retailer is set to notch its 12th consecutive session of gains, the longest winning streak since its 2017 IPO, as excitement builds around the company’s upcoming inclusion in the S&P 500 Index. Shares climbed another 1.9% on Wednesday to an all-time high of $464.99, bringing the stock more than 50% above its Nov. 21 close.
The remarkable rally follows Carvana’s stronger-than-expected third-quarter results reported in late October. While the numbers initially received a mild reaction, analysts say the earnings have aged well as traditional auto dealers posted weaker performances. Carvana’s digital-first model—once heavily questioned during market turbulence—has now begun to stand out for its margin improvements and operational efficiency.
“Its online model continues to gain traction which has helped improve margins,” said Dec Mullarkey of SLC Management. “Investors have noticed the progress and have been impressed with its execution and momentum.”
Fueling the surge further was the Dec. 5 announcement that Carvana will join the S&P 500 on Dec. 22, alongside CRH Plc and Comfort Systems USA Inc. Index inclusion typically increases demand for a company’s shares as institutional funds adjust their holdings to match the benchmark.
Major analysts responded swiftly: Barclays, Evercore ISI, and Bank of America all raised their price targets. BofA’s Michael McGovern, who boosted his target to $455, noted he flagged index eligibility as a key catalyst back in June, even as some on Wall Street dismissed the likelihood of inclusion.
Despite broader challenges in the used-car market—including rising loan delinquencies and consumer strain—some strategists argue the environment may ultimately benefit Carvana. “For those who are more financially strapped, used cars are more attractive,” said Matt Maley of Miller Tabak. With a “K-shaped” economic backdrop, he expects demand to strengthen into 2026.
Carvana’s momentum, paired with its S&P 500 debut, signals a striking reversal for a company once on the brink—now surging past expectations and rewriting its narrative.
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