Carvana Co.

New York Stock Exchange
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Bullish +55

Carvana (CVNA): Best Stock Under $100 to Invest In Now

📈 Carvana reported Q1 2026 revenue of $6.432 billion, a 52% year-over-year increase.

🚗 The company achieved its sixth consecutive quarter of retail unit growth exceeding 40%, selling 187,393 units.

💰 Revenue growth was largely driven by specific accounting treatment for vehicles acquired from a large marketplace partner.

📉 Non-GAAP retail GPU fell by $58 due to increased non-vehicle costs and reduced shipping fees.

🔮 Q2 2026 guidance indicates sequential improvement in retail GPU but a year-over-year decline.

⚠️ The company faces headwinds including ~$100 million in prior tariff benefits, lower shipping fees, and narrower industry spreads.

📊 Carvana is operating an e-commerce platform focused on buying and selling used cars.

Bullish Signals
  • Carvana delivered its sixth consecutive quarter of retail unit growth exceeding 40% year-over-year.
  • Total revenue surged by 52% to $6.432 billion in Q1 2026.
  • The company successfully sold 187,393 retail units in the first quarter of 2026.
Risk Factors
  • Non-GAAP retail gross profit per unit decreased by $58 due to increased non-vehicle costs and reduced shipping fees.
  • The company expects a year-over-year decline in Q2 2026 retail GPU driven by lower shipping fees and higher non-vehicle costs.
  • Narrower industry-wide wholesale-to-retail spreads are expected to negatively impact financial performance by approximately $100 million to $200 million this year.
Full Analysis
Carvana Co. (NYSE: CVNA) reported financial results for the first quarter of 2026, marking its sixth consecutive quarter of retail unit growth exceeding 40% year-over-year. The company sold 187,393 retail units during this period, driving total revenue to $6.432 billion, which represents a significant 52% increase compared to the same quarter last year. The substantial revenue growth was primarily attributed to the traditional gross revenue treatment applied to vehicles acquired from a large retail marketplace partner, rather than just an increase in unit volume. However, non-GAAP retail gross profit per unit (GPU) declined by $58 due to higher non-vehicle costs and reduced shipping fees. Looking ahead to the second quarter of 2026, Carvana expects sequential improvement in retail GPU but anticipates a year-over-year decrease. This projected decline is driven by approximately $100 million in tariff-related benefits realized last year, lower shipping fees, increased non-vehicle costs, and an estimated $100 to $200 million impact from narrower industry-wide wholesale-to-retail spreads. The article concludes with a promotional pitch suggesting that AI stocks may offer higher returns than Carvana, while listing various other stock recommendations and subscription offers for the publication.