Carvana Co. (Carvana (CVNA)) is having a good Thursday, and it's not just because the broader market is having a so-so day. The stock is up sharply after shareholders approved a 5-for-1 stock split and an increase in the number of authorized shares, with both changes taking effect today.
Stock splits don't change the fundamental value of a company—your slice of the pie is the same size, just cut into more pieces. But they can change trading dynamics by lowering the per-share price, making the stock more accessible to retail investors and potentially boosting liquidity. In Carvana's case, the move is also happening on a day when market breadth is soft (only three sectors are advancing) and small-caps are lagging, so the rally looks company-specific rather than part of a broad risk-on wave.
Earnings Snapshot
Last week, Carvana reported first-quarter revenue of $6.43 billion, beating analyst estimates of $6.08 billion, according to market data. The company also posted earnings of $1.69 per share, topping the $1.50 per share consensus. Looking ahead, Carvana expects a "sequential increase" in both retail units sold and adjusted EBITDA in the second quarter, and it remains on track to deliver "significant growth" on both metrics in 2026.
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price target of $97.03. Recent analyst moves include:
- DA Davidson: Neutral (raises target to $67.00) on May 1
- RBC Capital: Outperform (raises target to $92.00) on May 1
- Citizens: Market Outperform (raises target to $103.00) on May 1
Talking about earnings, a BTIG analyst said, "Looking ahead, CVNA vaguely guided to sequential increases in units and Adjusted EBITDA and reiterated expectations for significant growth for both metrics on a y/y basis." He raised his second-quarter estimates for adjusted earnings, unit sales, and revenues.
A Needham analyst said the results were proof of Carvana's model working, with higher retail units driving operating expense leverage. He added, "CVNA continues to screen as the best large cap growth story in our coverage ahead of a long tail of growth in units and fixed cost leverage."
Top ETFs Holding Carvana (CVNA) and Their Impact
- T. Rowe Price Blue Chip Growth ETF (TCHP): 3.95% weight
- Nuveen ESG Mid-Cap Growth ETF (NUMG): 3.51% weight
- SPDR S&P Retail ETF (XRT): 1.55% weight
Significance: Because CVNA carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
CVNA Price Action: Carvana shares were up 402.47% at $391.30 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to market data.
