Carvana’s value has skyrocketed
According to recent reports, Carvana, the company known for popularizing the online, direct-to-consumer used-car marketplace, has dramatically increased its value, surpassing that of traditional automakers, including Detroit-based companies like General Motors, Ford and Stellantis. Per Barron’s, the value of Carvana stock is currently approaching a 12-day streak of positive gains, rising by as much as 1.1% to $461.40 on December 10, and is up by nearly 50% over the past 12 days.
If it holds onto its gains and shares close above $459.68, the company’s market capitalization is said to surpass $100 billion for the first time, surpassing the likes of GM’s $73.86 billion market cap, Ford’s $52.4 billion, and Stellantis’s $18.849 billion.
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Wall Street experts are confident about Carvana
Much of the excitement around the stock on Wall Street revolves around a recent announcement that could change its trajectory. On December 5, S&P Dow Jones Indices announced that Carvana and two other companies would be added to the S&P 500, with the first day of trading scheduled for December 22. Inclusion in a primary index like the S&P 500 can help boost a company’s shares, as investment in the index as a whole can increase demand for the stock. Following the Dec. 5 announcement, analysts at major Wall Street firms, including Barclays, Evercore ISI, and Bank of America, raised their price targets on Carvana, signalling confidence in the company’s overall performance.
The recent gains over the past 12 days follow strong Q3 2025 results, which, according to Bloomberg, did not stand out to investors until auto dealers reported lacklustre numbers, which made the online used-car marketplace stand out. At the time, Carvana reported selling 155,941 vehicles in the third quarter of 2025, which helped drive total revenue up 55% to $5.65 billion. “Its online model continues to gain traction, which has helped improve margins,” SLC Management managing director Dec Mullarkey told the financial news outlet. “Investors have noticed the progress and have been impressed with its execution and momentum.”
Carvana’s proliferation comes at a time of rising car affordability.
The meteoric rise of Carvana comes at a time when the affordability of new cars has become a significant issue. According to data from Kelly Blue Book and Cox Automotive, the average transaction price of a new car in November 2025 was $49,814, a 1.3% year-over-year increase, which is not far from the $49,760 recorded in October.
However, in September, average transaction prices reached an all-time high of $50,080, a figure influenced by transactions involving more expensive luxury and electric cars during the month. In a statement to Bloomberg, Matt Maley, chief market strategist at brokerage firm Miller Tabak + Co., noted that as long as this issue persists, it could drive interest in the used market and benefit Carvana.
“For those who are more financially strapped, used cars are more attractive,” Maley said. “Given the K-shape of the US economy right now, that should help used car sales improve in 2026.”
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Final Thoughts
Carvana isn’t alone in the online used car-buying space. Recently, Ford announced that its customers can now explore inventory and complete most of the paperwork to finance or purchase pre-owned vehicles on Amazon’s car-buying platform, Amazon Autos. In addition, Hertz Car Sales launched its own dedicated online platform, which allows customers to get trade-in offers, calculate monthly payments, get pre-qualified for financing, and view optional protection plans without leaving their homes or couches.
While average new-car prices reach new highs, used-car prices follow closely behind. Edmunds data shows that the average cost of a three-year-old used car reached $31,067 in Q3 2025, the highest level in three years. As the automotive market evolves, it will be interesting to see how Carvana and its competitors adapt to consumer needs and the ongoing affordability challenges.
