Carvana (CVNA) Stock Forecast & Price Target

Carvana is a rapidly growing e-commerce platform for used car sales that is well-positioned to capture additional revenue streams through financing, vehicle service contracts, and insurance. The company's retail vehicle unit sales are the foundation of its business and have consistently driven strong revenue growth. With a visible, lengthy growth runway and industry-leading financial metrics, Carvana is poised for continued success and deserving of a higher valuation.

Carvana is a company that derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. However, the majority of its revenue comes from retail vehicle unit sales, which is driving the company's growth. Despite strong unit economics and a vertically integrated model, there are risks to the company's growth, including potential new entrants in the market and changes in the macro environment. Furthermore, their recent earnings report showed a decrease in adjusted EBITDA margins and higher SG&A expenses, which could impact future profitability.