What Happened?
Shares of online used car dealer Carvana (NYSE: CVNA) jumped 3.7% in the morning session after JPMorgan Chase & Co. boosted its price target on the stock, adding to a wave of positive sentiment from Wall Street.
The investment bank raised its target price to $425 from $415 and kept an "overweight" rating on the shares. This move followed similar actions from other firms, including Piper Sandler and JMP Securities, who also recently upped their price targets. This growing confidence appeared tied to the company's strong performance, which included a noteworthy revenue growth rate of nearly 42% as of the end of June 2025.
Overall, analysts presented an average 12-month price target of $412.84, which marked a significant increase from previous estimates, signaling widespread optimism about the company's future prospects.
After the initial pop the shares cooled down to $389.50, up 3.1% from previous close.
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What Is The Market Telling Us
Carvana’s shares are extremely volatile and have had 40 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 29 days ago when the stock dropped 3.8% on the news that Hertz Global Holdings announced it will begin selling certified used cars on Amazon.com, a move that introduces a significant new competitor into the online vehicle market.
The move allows shoppers to browse, finance, and purchase Hertz's pre-owned vehicles through the e-commerce giant's platform, Amazon Autos. This development is viewed as a direct challenge to Carvana's online sales model, raising concerns about increased competition in the digital used car market. Investors appear worried that the partnership between Hertz and Amazon could negatively impact Carvana's sales and market share. Furthermore, the new arrangement could lead to fewer of Hertz's used vehicles being sold through the Carvana platform, directly affecting its inventory and sales channels.
Carvana is up 95.2% since the beginning of the year, and at $389.50 per share, it is trading close to its 52-week high of $390.17 from July 2025. Investors who bought $1,000 worth of Carvana’s shares 5 years ago would now be looking at an investment worth $2,364.
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