Why Is Carvana (CVNA) Stock Up 42% Today?


  • Carvana (CVNA) stock is rising higher alongside its latest earnings report.
  • That’s despite it missing estimates for the quarter.
  • However, the company reported recorded profits for 2023.
CVNA Stock - Why Is Carvana (CVNA) Stock Up 42% Today?

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Carvana (NYSE:CVNA) stock is soaring higher on Friday after the used car e-commerce company posted record positive results in its latest earnings report.

First, investors will note that Carvana reported an EPS loss of $1.00 alongside revenue of $2.42 billion for the fourth quarter of 2023. These figures both came in below Wall Street’s estimates for -92 cents per share and revenue of $2.55 billion.

Even so, traders are excited as the company has been improving its profitability over the last year. That resulted in it reporting a net income of $450 million in 2023. For comparison, its net loss from the prior year was $1.59 billion. Investors will also note that Carvana retired $878 million in debt during the year.

Ernie Garcia, founder and CEO of Carvana, said the following about the results:

“2023 was an exceptional year for Carvana, where our deliberate focus on efficiency and profitability drove fundamental business improvements that not only led to our best-ever financial results but also increased customer NPS throughout the year.”

What’s Next for CVNA Stock?

Carvana also provided an outlook for the first quarter of 2024 in its latest earnings report. The company is expecting retail units sold to increase slightly year-over-year (YOY). It’s also looking for adjusted EBITDA to be significantly above $100 million.

CNVA stock is up 42% as of Friday morning as some 6.4 million shares change hands. That’s closing in on the company’s daily average trading volume of about 8 million shares.

There are even more stock market stories that traders are going to want to read about below!

We have all of the hottest stock market news investors need to know about on Friday! Among that is what’s going on with shares of Walmart (NYSE:WMT) stock, Applied Optoelectronics (NASDAQ:AAOI) stock and Charge Enterprises (NASDAQ:CRGE) stock. You can find out all about these topics at the following links!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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