Two years ago, Carvana Co (NYSE:CVNA) looked totaled. After peaking at $376.83 in August 2021, the stock nosedived to just $3.55 by December 2022—a jaw-dropping 99% collapse that had bankruptcy alarms blaring.
- Check out CVNA stock’s historical collapse here.
But in true comeback-kid fashion, Carvana has now roared back to life, hitting a new all-time high of $413.34 on Thursday. That's an astonishing 11,543% rebound from the depths.
Related: Carvana Stock Climbs To New Highs After Q2 Earnings: What’s Driving The Action?
The Tariff Tailwind And Turnaround Playbook
Carvana's turnaround isn't just cosmetic—it's structural. U.S. tariffs on imported cars have made new vehicles pricier, and shoppers have flocked to more affordable used options. That demand spike supercharged Carvana's gross profit per unit, especially in April.
Meanwhile, the company's 2023 overhaul has been a case study in survival: cutting costs, slashing debt, and revamping logistics. Today's Carvana is leaner, meaner, and digitally sharper, with AI-assisted pricing, expanded inspection hubs, and a fully integrated model that's clicking.
Q2 Blowout Sparks Rally
A record-breaking second quarter—with surprise beats on margins and earnings—lit the fuse. Analysts rushed to revise price targets, while retail investors piled in, feeding the momentum loop. Meme-stock fever added rocket fuel, but the foundation was already there: real profits, scalable growth, and better execution.
Valuation Risks Remain
At around 67× forward earnings per Benzinga Pro data, Carvana's stock isn’t exactly in value territory. Some analysts caution that credit tightening or any operational hiccup could deflate the momentum. But for now, the market's tuned into the comeback—not the caution tape.
Carvana's 11,000% rebound is more than a meme—it's a revival powered by tariffs, tech, and tenacity.
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