The Carvana Rally is Far From Over

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Look at Carvana (CVNA) go. Left for dead at the tail end of 2022, the stock has been explosive.  In fact, since January, CVNA ran from about $4.25 to $25 so far.  And it may still have more gas in it. All thanks to cost-cutting and an updated outlook.

According to the company, it now expects to achieve adjusted EBITDA above $50 million in the second quarter of 2023. Earlier this year, Carvana had signaled it would reach positive adjusted earnings in Q2 but hadn’t given an exact amount, according to Yahoo Finance.

Plus, “Carvana also expects its non-GAAP total gross profit per unit to come in above $6,000, representing a new company record and a more than 63% improvement compared to the same quarter last year.” Even better, the heavily shorted stock is squeezing shorts, and could see higher highs because of it.

CVNA last traded at $24.62 after hitting an intraday high of $26.09.  Volume spiked to 167.7 million shares, as compared to the daily average volume of 16.65 million shares. From here, we’d like to see CVNA rally to at least $30 in the next few days.