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.
Users expressed concerns over the classification of gains from the company's investment in Root, and a reduction in share count.
Carvana shares are up 27.4% year to date.
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