Carvana Co. (NYSE: CVNA)

The company operates an e-commerce platform for buying and selling used cars.

Recommendation Rationale – SELL at USD 392.66

• Financial Highlights: CVNA’s selling, general and administrative expenses increased by 21.1% YoY to USD 551mn in Q2FY25 vs USD 455mn in Q2FY24, driven by higher employee headcount, increased advertising spend, and other operating costs, largely reflecting growth in retail units sold during the quarter. Cash flows from operating activities declined by 42.6% YoY to USD 261mn in H1FY25 vs USD 455mn in H1FY25, driven by higher finance receivable originations, lower payables growth, and increased logistics, operations, and compensation costs.
• Trading Near the Resistance: CVNA stock has surpassed its R1 level recommended on 06 August 2025. Therefore, share price can face resistance at the current levels.
• Market Risk: Carvana operating in online used-car retail, faces risks from volatile vehicle prices, high interest rates, and tightening credit, which could weaken demand.

CVNA’s Daily Price Chart

Valuation Methodology: P/E Multiple Approach (FY December'26E) (Illustrative)

Stock might trade at a slight discount considering the risks associated such as macro-economic uncertainty, global slowdown, etc. For conducting the valuation, the following peers included: DoorDash Inc (NASDAQ: DASH), Lyft Inc (NASDAQ: LYFT), and Zillow Group Inc (NASDAQ: ZG) have been considered.

Considering the current trading levels as well as risks associated, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ rating has been provided on the stock at the closing price of USD 392.66 per share, up 6.33% as on 29 September 2025.

Carvana Co. (NYSE: CVNA) is part of Kalkine’s Global Big Money Portfolio.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 29 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Note 5: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.