CVNA - Why Carvana Stock Zoomed 44% Higher This Week
2024-05-03 14:57:00 ET
Shares of Carvana (NYSE: CVNA) rose more than 44% this week, according to data from S&P Global Market Intelligence . The online used car marketplace reported surprisingly strong earnings for the first quarter of 2024, showing growth and profitability that was lacking in recent years. As of Friday, May 3, Carvana stock is up 129% this year, significantly outpacing the broad S&P 500 index.
Here's why Carvana stock was rising yet again this week.
2022 and 2023 were rough years for Carvana, as customers retreated from pandemic-era online used car shopping, sending unit volumes tanking for multiple quarters. However, late last year the company was able to stabilize these volume declines, and in Q1 of this year, volumes started to grow meaningfully again. Retail units sold were 92,000 in Q1, up 16% year over year and a sequential increase of 21%. This number is still below where Carvana was in Q1 2021 but is a good sign for the business.
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Why Carvana Stock Zoomed 44% Higher This Week