Added to YB: 2026-02-25
Pitch date: 2026-02-21
CVNA [neutral]
Carvana Co.
-2.6%
current return
Author Info
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Company Info
Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars.
Market Cap
$46.4B
Pitch Price
$333.84
Price Target
N/A
Dividend
N/A
EV/EBITDA
22.45
P/E
38.48
EV/Sales
2.46
Sector
Specialty Retail
Category
special_situation
Carvana Is Worth Zero
CVNA (update): Q4 beat on $5.6B rev (+58% YoY) masked 5-6% EBITDA miss, margin compression to 9.1% (vs 12.4% peak), & GPU collapse to $3,076 (lowest in 2025). Strip $685M non-cash DTA benefit: ~$333M net income, 70-80% from loan sale gains (not car sales). Core retail profit: ~$16M on $55B valuation. SEC subpoena re loan practices; Garcia family extracted $5.8B while DriveTime burned $1B cash. Subprime delinquencies hit record 6.9%; Ally renewal Oct 2026 = key risk. Bear case $120-160; bull $550-650 requires margin expansion + gain-on-sale intact thru credit cycle.
Read full article (23 min)