Early Bird Prime for December 14, 2025
In 2025, Carvana $CVNA ( ▼ 7.5% ) has been incredible, soaring 128.34%. Most of the gain has been in the past few weeks.
The company, once the poster child for debt-ridden despair and short-seller delight, has now been welcomed into the prestigious S&P 500 club in the past week. Bank of America analysts have thrown confetti in the air this past week, upgrading Carvana's stock faster than you can say “used car sales.”
But before you rush to buy shares, remember that Carvana's financials still have a few skeletons in the trunk. The company has over $5 billion in debt. And let's not forget their reliance on asset-backed securitizations of auto loans, particularly in the mid-subprime space. It could be a bit of a challenge.
The used-car market is cyclical. Prices soften, recession risks loom, and interest rates remain elusive. Carvana's impressive volume growth and inventory build make it the belle of the ball, but also the most likely to trip over its own feet if the music stops. A sharp reversal in used-vehicle values or a hiccup in customer financing could turn this Cinderella story into a pumpkin real quick.
Should you buy Carvana's stock right now, going into 2026, or should you avoid it? Here’s the answer:
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