Carvana On Deck After Used-Car Seller Guided To A Record 2024

Carvana's stock went on a vertical climb after reporting better-than-expected earnings.

Carvana Co. stock rocketed more than 34% in extended trading on Thursday after the used-car seller guided to a record 2024, boosted by growth in its core e-commerce business and expansion into new markets.

The company's fourth-quarter revenue more than doubled to $3.60 billion, topping the FactSet consensus of $3.47 billion, as it sold more cars at higher prices.

Carvana sees 2023 revenue of $16 billion to $17 billion

For 2023, Carvana sees revenue of $16 billion to $17 billion, above the FactSet consensus of $15.93 billion, and adjusted EBITDA of $600 million to $700 million. It also guided to record revenue and EBITDA in 2024.

"We continue to see a massive white space opportunity as only 1% of used cars are currently purchased online," said Carvana CEO Ernie Garcia in a statement. "The secular shift to online car buying, combined with our relentless focus on improving our customer experience, gives us confidence in our ability to deliver continued profitable growth."

Carvana's stock has been on a roller coaster ride, rising from single digits in 2020 to an all-time high of $377.59 in 2021.

However, shares have since plunged by about 90% as rising interest rates and recession fears dampened investor sentiment. The stock's recent rally suggests that investors are betting on Carvana's ability to weather the economic headwinds and continue to grow its market share.