Carvana Sets Ambitious Long-Term Target, Delivers Strong Q1 Results: Retail Skeptical

Carvana CEO downplayed the impact of Trump’s tariffs, saying the company experienced "little gyrations" of demand that have since leveled off.
a Carvana logo is displayed on the screen of an iPad. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images)
a Carvana logo is displayed on the screen of an iPad. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images)
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Yuvraj Malik·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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Carvana (CVNA) delivered strong quarterly results and set ambitious long-term targets, expecting inflationary pressures to drive consumers towards used cars.

The company set a target of selling 3 million vehicles annually at an adjusted EBITDA margin of 13.5% within the next five to 10 years.

For the first quarter, revenue rose 38% to $4.23 billion, and profit per share to $1.51 from $0.67 last year.

The company said its net income benefited from a roughly $158 million positive change in the fair value of its investment in auto insurance firm Root.

Carvana CEO Ernie Garcia downplayed the impact of Trump’s tariffs, saying the company experienced "little gyrations" of demand that have since leveled off.

The company said vehicle sales grew 46% to nearly 134,000 units.

Carvana shares were up 4.3% in premarket trading on Thursday.

On Stocktwits, the retail sentiment for the company dropped to 'bearish' from 'neutral' the previous day.

Screenshot 2025-05-08 at 2.50.34 PM.png
CVNA sentiment and message volume as of May 7 | Source: Stocktwits

Users expressed concerns over the classification of gains from the company's investment in Root, and a reduction in share count.

https://stocktwits.com/ImaClueless/message/613851813 

https://stocktwits.com/Texas12/message/613871838 

Carvana shares are up 27.4% year to date.

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