Core Viewpoint - Carvana is experiencing significant activity in its stock, with notable insider transactions, institutional investments, and varying analyst ratings impacting its market performance. Financial Performance - Carvana shares opened at $391.81, with a market capitalization of $85.23 billion, a P/E ratio of 89.45, and a 12-month price range between $148.25 and $486.89 [1] - The company has a debt-to-equity ratio of 1.63, a current ratio of 4.05, and a quick ratio of 2.55 [1] Insider Transactions - COO Benjamin E. Huston sold 40,000 shares at an average price of $439.50, totaling $17,580,000, reducing his position by 28.42% [2] - Insider Paul W. Breaux sold 20,000 shares at an average price of $438.50, totaling $8,770,000, representing a 22.40% decrease in ownership [2] - In the last 90 days, insiders sold a total of 419,304 shares valued at $179,171,777, with corporate insiders owning 16.36% of the stock [2] Institutional Investments - Viking Global Investors LP increased its stake by 94.9%, owning 2,101,241 shares worth $792,672,000 after acquiring 1,023,265 shares [3] - Invesco Ltd. raised its position by 96.8%, now holding 1,445,018 shares valued at $545,119,000 [3] - Amundi boosted its stake by 181.5%, owning 827,606 shares valued at $305,883,000 [3] - Institutional investors collectively own 56.71% of Carvana's stock [3] Analyst Ratings and Price Targets - Wedbush raised its target price from $400.00 to $500.00, maintaining an "outperform" rating [5] - Jefferies Financial Group increased its price target from $475.00 to $550.00, giving a "buy" rating [5] - UBS Group raised its target from $450.00 to $545.00, also rating it as a "buy" [5] - The consensus rating for Carvana is "Moderate Buy" with a price target of $474.27 [7] Company Overview - Carvana operates as an online-only retailer of used vehicles, providing a digital platform for buying and selling cars [8] - The company offers services including direct retail sales, trade-in offers, vehicle financing, and a seven-day return policy [9]

Group 1 - The law firm Kirby McInerney LLP is investigating Carvana Co. for possible violations of federal securities laws and other unlawful business practices [1] - A report by short seller Gotham City Research, dated January 28, 2026, claims that Carvana's reported profitability is questionable [1]

Company Overview - Carvana Co. (CVNA) has a market capitalization of $89.5 billion and operates an online platform for buying and selling used cars, providing services such as vehicle acquisition, inspection, reconditioning, financing, logistics, and post-sale customer support [1] Stock Performance - Over the past 52 weeks, CVNA shares have increased by 53.8%, outperforming the S&P 500 Index, which rose by 15.6%. However, on a year-to-date basis, CVNA shares are down 2.4%, while the S&P 500 has increased by 1.7% [2] - CVNA has also outperformed the State Street Consumer Discretionary Select Sector SPDR ETF (XLY), which rose by 4.1% over the same period [3] Financial Performance - In Q3 2025, Carvana reported revenue of $5.65 billion, exceeding expectations. However, shares fell by 13.8% the following day due to disappointing earnings, with profit of $1.03 per share missing Wall Street estimates and adjusted EBITDA margin declining to 11.3% [4] - Management's forward guidance projected Q4 retail unit sales just above 150,000, indicating a potential 4% quarter-on-quarter decline and a slowdown in year-on-year growth, despite a strong 44% increase in Q3 to 155,941 units [4] Earnings Expectations - For the fiscal year ending December 2025, analysts anticipate CVNA's EPS to rise by 389.2% year-over-year to $4.99. The company's earnings surprise history is mixed, with three out of the last four quarters beating consensus estimates [5] - Among 23 analysts covering the stock, the consensus rating is a "Strong Buy," consisting of 15 "Strong Buy" ratings, three "Moderate Buys," and five "Holds" [5] Analyst Ratings and Price Targets - The current analyst configuration is more bullish than three months ago, with 12 "Strong Buy" ratings. UBS analyst Joseph Spak maintained a "Buy" rating and set a price target of $545 [6] - The mean price target of $491.86 suggests a premium of 19.6% to CVNA's current levels, while the highest price target of $600 implies a potential upside of 45.9% from current prices [6]

Core Insights - The meme stock phenomenon began in 2021 with GameStop, driven by retail traders on Reddit's WallStreetBets forum, leading to significant price surges due to short squeezes [1] - Investments in meme stocks from 2016 or at their IPOs have resulted in varied outcomes, with some stocks yielding massive gains while others have led to substantial losses [2] Investment Performance - A $1,000 investment in various meme stocks a decade ago would yield different values today, highlighting the volatility and potential of these stocks [3] - Notable performance includes: - GameStop (GME): $3,532 (+253%) - AMC Entertainment Holdings (AMC): $11 (-98.9%) - Palantir Technologies (PLTR): $14,659 (+1,366%) - Carvana (CVNA): $29,712 (+2,871%) - Roku (ROKU): $6,033 (+503%) [4] Market Trends - Meme stocks continue to emerge, indicating a persistent trend driven by social media sentiment rather than traditional business fundamentals [5]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Carvana Co. due to allegations of materially misleading business information issued by the company [1]. Group 1: Investigation and Class Action - Shareholders who purchased Carvana securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees [2]. - The Rosen Law Firm is preparing a class action to seek recovery of investor losses related to Carvana [2]. Group 2: Stock Performance and Allegations - Carvana's stock fell by 14% on January 28, 2026, following a report from a short seller that claimed the company's earnings were more dependent on private companies linked to its controlling shareholders than previously known [3]. Group 3: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and being ranked highly for the number of settlements [4]. - In 2019, the firm secured over $438 million for investors, and its founding partner was recognized as a leading figure in the plaintiffs' bar [4].

Core Thesis - Carvana Co. is positioned as a leading innovator in online auto retail, demonstrating strong growth and profitability in Q3 2025, with a bullish outlook for future performance [2][6]. Financial Performance - In Q3 2025, Carvana sold 155,941 retail units, a 44% increase year over year, with revenue rising 55% to $5.65 billion, marking an annualized revenue run rate exceeding $20 billion for the first time [3]. - GAAP operating income reached a record $552 million, and net income increased to $263 million, resulting in a net margin of 4.7% [3]. - Adjusted EBITDA grew by $208 million to $637 million, with an 11.3% margin, reflecting strong conversion of adjusted EBITDA into operating income [3]. Unit Economics - Despite some pressure on unit economics, retail GPU declined by $77 and wholesale GPU fell by $168, primarily due to higher vehicle depreciation [4]. - Improved financing, ancillary attach rates, stronger loan performance, and lower funding costs helped offset these headwinds [4]. - Non-GAAP SG&A per retail unit decreased by $319, indicating enhanced efficiency despite increased advertising spend [4]. Competitive Advantage - Carvana's competitive moat is supported by its vertically integrated model, which includes reconditioning, logistics, wholesale, and financing [5]. - Initiatives like ADESA site expansion and same- or next-day delivery pilots have improved selection and speed, with 40% of Phoenix customers now receiving same-day delivery compared to 10% nationally [5]. Future Outlook - Management anticipates Q4 retail units to exceed 150,000 and adjusted EBITDA to be at or above the high end of the $2.0–$2.2 billion full-year range, aiming for a long-term target of 3 million units at a 13.5% EBITDA margin [6]. - The company's strong scale, robust cash flow conversion, and operational leverage present a compelling bullish case with significant upside potential [6].

Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices involving Carvana Co. and its officers or directors [1] Group 1: Investigation and Allegations - Pomerantz LLP is representing investors of Carvana Co. in an investigation regarding possible securities fraud [1] - Gotham City Research LLC released a short report claiming that Carvana's earnings for 2023-2024 are overstated by over $1 billion and that the company is more reliant on related parties than previously disclosed [3] Group 2: Market Reaction - Following the allegations from Gotham City Research, Carvana's stock price dropped by $67.68 per share, a decline of 14.17%, closing at $410.04 per share on January 28, 2026 [3]

Core Viewpoint - Block & Leviton is investigating Carvana Co. for potential securities law violations following a report alleging that the company's profitability is based on undisclosed related-party transactions [1][2]. Group 1: Investigation Details - Carvana's shares fell over 20% on January 28 after Gotham City Research reported that the company's earnings were subsidized by DriveTime, which reportedly burned over $1 billion in cash while leveraging 20x to 40x EBITDA [2]. - The report also claims that Bridgecrest marked down billions in loans as Carvana recognized gains on loan sales, raising concerns about the company's financial practices [2]. Group 2: Eligibility and Actions - Investors who purchased Carvana Co. common stock and experienced a decline in share value may be eligible to participate in the investigation, regardless of whether they sold their investment [3]. - Block & Leviton is actively investigating potential securities law violations and may file actions to recover losses for affected investors [4]. Group 3: Whistleblower Information - Individuals with non-public information about Carvana Co. are encouraged to assist in the investigation or report to the SEC under the whistleblower program, with potential rewards of up to 30% of any successful recovery [6]. Group 4: Firm's Reputation - Block & Leviton is recognized as a leading securities class action firm, having recovered billions for defrauded investors and representing many top institutional investors [7].

Core Viewpoint - Carvana Co. is under investigation for potential violations of federal securities laws due to significant stock price drops linked to claims of accounting improprieties [1][2]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is leading the investigation into Carvana for possible overstated earnings and improper accounting of related party transactions [3]. - The investigation follows a report by Gotham City Research LLC, which claims that Carvana's financial results are closely tied to related party entities controlled by Ernest Garcia II, indicating potential accounting irregularities [4]. Group 2: Stock Performance - Carvana's stock price fell over 20% on January 28, 2026, dropping from $474.06 per share to a low of $374.55 per share following the release of the Gotham City report [5]. - The report alleges that hidden relationships within Carvana's financial structure may have overstated earnings by over $1 billion, posing substantial risks to investors [4].

Core Insights - Carvana Co. is a leading online platform for buying and selling used cars, known for its innovative sales methods such as car vending machines and home delivery services [1] - The company faces competition from traditional dealerships and other online platforms like Vroom and Shift Technologies [1] Investigation and Stock Performance - The Rosen Law Firm is investigating Carvana for potential securities claims due to allegations of misleading business information, which led to a 14% drop in stock price following a short seller's report [2] - Despite the allegations, Wells Fargo has maintained an "Overweight" rating for Carvana, raising its price target from $500 to $525, indicating confidence in the company's future [3] - Currently, Carvana's stock is priced at approximately $416.98, reflecting a 3.96% increase, with a yearly high of $486.89 and a low of $148.25, demonstrating significant volatility [4][6] Market Capitalization and Trading Volume - Carvana's market capitalization is approximately $90.4 billion, with a trading volume of 1,527,499 shares [5][6]