779% Gain from My Carvana Stock Trade! What to Expect Next.
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Hello Sweet Money Readers,
On August 30, 2022, I wrote an article titled “Beaten-Down Car Stock for Next Bull Market.”
I recommended buying shares in Carvana Co. (NYSE: CVNA) in this article.
At the time, the company’s stock was trading at a huge discount.
Its share price plummeted 91% from a high of $376.83 on August 10, 2021, to $33.09 per share when I wrote the article on August 30, 2022.
Carvana’s business looked dire. In fact, its shares fell even more before the year was out.
Naysayers abounded.
The words: sell Carvana were pervasive among some analysts.
But, despite the price collapse, I thought differently about Carvana.
I wrote about Carvana from personal customer experience.
As you know, customer service is everything for a business.
My customer service interaction with Carvana was effortless.
It was a simple, automated, and convenient transaction.
In my article, I noted that Carvana employs next-generation technology and digitization to operate its online platform for buying and selling used cars.
It also offers vehicle inspections, 360-degree imaging technology, financing, warranty coverage, and pickup and delivery services.
I asked in the article, “is it a good time to buy the stock?”
I decided it was.
Though the company faced a tough macro-environment, growing inflationary headwinds and had withdrawn its 2022 company outlook, I wrote:
“Over the long run, these difficulties would likely subside. Investors who purchase its shares at today’s price (under $40 per share) may be in for a windfall if they’re willing to take on some risk and hold with patience.”
And guess what? Investors who followed this recommendation won.
The stock now trades at around $291 per share.
This is a 779% increase from August 30, 2022.
Based on yesterday’s market close, this gain beat the S&P, Dow, and NASDAQ nearly 18-to-1!
So why am I revisiting this Carvana trade today?
A recent Bloomberg Intelligence (BI) report published on February 12, 2025, forecasts that Carvana could double its earnings this year.
This increase could happen as the online used car seller “scales up reconditioning operation and expands vehicle supply through the acquired ADESA online wholesale auction sites … There’s room to grow, as the used-car market is highly fragmented and more off-lease vehicles are returning to the supply since the pandemic.”
Carvana can possibly maintain 2024’s growth pace this year by further integrating its site with the acquired ADESA warehouses and getting cars to local customers faster.
BI goes on to note:
“Carvana regained strong momentum in used-car sales in 2024, leading the largest absolute unit growth among dealer rivals. Industry-wide inventory constraints hindered used-car sales growth in 2023 and could further ease as more off-lease returns enter the market.”
It’s important to state that past performance is not an indicator of future results.
But if Carvana can maintain its 2024 growth pace this year, its earnings could double, according to Bloomberg consensus.
Further, speaking of stock gains … in the February 2025 issue of The GenWealth Report, I recommended a stock already trading in positive territory with potential room to grow.
I’m always on the lookout for stocks that have big gain potential.
This stock is focused on the AI Automation robot market trend.
If you’d like to get this stock’s name and ticker, please check out The GenWealth Report.
Details on how to subscribe can be found here.
That’s it for this edition of Sweet Money.
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Until next time, keep investing!
Disclaimer: We will not track any recommendations in Sweet Money Daily. We are just sharing our opinions, not advice. If you want access to the stocks in our model portfolio with tracking, updates, and buy/sell guidance, please check out The GenWealth Report.
