Carvana Stock Is Up 4,000% in Two Years. What Will It Do in 2025? | Global News Avenue

caravan(Vascular Neural Network Analyzer)’s stock price more than tripled in 2024, extending a two-year bull run that saw the online used car retailer return 4,000% amid a turnaround effort that lifted the online used car retailer from bankruptcy. The edges are pulled out.

In August 2021, shares surged to an all-time high above $370 as COVID-19 lockdowns and economic stimulus measures drove a surge in used car sales. The tables turned when inflation began to accelerate and consumers’ pandemic savings dwindled. The company’s shares fell 99% to a December 2022 closing low of $3.72.

The stock has since rebounded after a series of layoffs and a rebound in used car sales Exceeded profit expectations and its most recent quarterly report.

JPMorgan calls Hindenburg report ‘exaggerated’

Short seller Hindenburg Research last week cast doubt on the validity of the rally. publish report Claims “Accounting manipulation and lax underwriting drove interim reported revenue growth.” Shares fell nearly 13% in the two days following the report, but some bullish analysts weren’t worried.

JP Morgan Analyst reiterate On Friday, they had an “overweight” rating and on Tuesday, sent a second note to clients rebutting Hindenburg’s report. Analysts called concerns about Carvana’s lending activity “overblown” and argued that “there are legitimate concerns or debates about the broader picture and potential future consumer pressures.”

Needham analysts also maintained their bullish view on the stock, which they believe should trade around $330 by the end of the year. They said Hindenburg was “wrong” to worry that deteriorating auto loan performance would hamper sales growth, citing Carvana’s partnership with lender Ally Financial.ally), were extended yesterday, and seasonal factors make current loan dynamics look worse than they actually are.

Analysts divided on Carvana stock outlook

Half of the 12 Carvana analysts tracked by Visible Alpha have a “buy” rating on the stock, while the other half have a “hold” rating. All analysts who have issued ratings since the Hindenburg report have been in the “buy” or equivalent camp.

Analysts have set 12-month price targets in a range of $148 to $330. The average price target is about $253.46, which is 34% higher than Monday’s closing price.

Correction – This article has been updated to correct the number of current ratings for Carvana analysts tracked by Visible Alpha.