Carvana: Stronger Than Ever Operationally—But Is the Stock Still Heading for a Correction?

Carvana has revolutionized the U.S. used-car market with a largely digital buying and selling process. Customers can select vehicles online, finance them, trade in their current vehicle, and have them delivered or pick them up at pickup locations. The company generates revenue from vehicle sales, financing, and ancillary products, as well as through ADESA’s wholesale business. Following a difficult period in 2022 and 2023, Carvana has cut costs, improved margins, and increased utilization of its existing logistics infrastructure. Structurally,...