In This Article:
What Happened?
Shares of online used car dealer Carvana (NYSE: CVNA) jumped 6.3% in the pre-market session after Morgan Stanley analysts upgraded the stock's rating from Neutral to Buy. The analysts noted that the stock's recent pullback represented a "unique opportunity to build a position."
The shares closed the day at $221.64, up 3.8% from previous close.
Is now the time to buy Carvana? Access our full analysis report here, it’s free.
What The Market Is Telling Us
Carvana’s shares are extremely volatile and have had 46 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 9.6% on the news that Piper Sandler analysts upgraded the stock from Neutral to Buy, suggesting that the company's reduced valuation presented a buying opportunity. The analysts added "We would use the recent sell-off to accumulate CVNA shares."
Carvana is up 11.1% since the beginning of the year, but at $221.66 per share, it is still trading 22.3% below its 52-week high of $285.33 from February 2025. Investors who bought $1,000 worth of Carvana’s shares 5 years ago would now be looking at an investment worth $3,546.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.