Macroeconomic Factors Are Dragging Down Carvana's Stock. Should You Buy the Dip?

By Leo Sun – Apr 7, 2026 at 11:15AM ESTKey PointsCarvana’s stock has dropped more than 30% from its record highs.It still looks surprisingly cheap relative to its long-term growth potential.Carvana (CVNA 1.58%), the online marketplace for used cars, went public nearly nine years ago at $15 per share. Its stock sank to an all-time low of $3.72 on Dec. 27, 2022, as investors fretted over its slowing sales, rising debt, and steep losses. However, Carvana's subsequent recovery, soaring profits, and inclusion in the S&P 500 propelled its stock to a record high of $478.45 on Jan. 22, 2026. A $10,000 investment in the stock at its lowest point would have blossomed into $1.29 million in just over three years. Today, Carvana's stock trades at about $310. Does that pullback represent a good buying opportunity? Image source: Carvana. What happened to Carvana over the past five years? Carvana's online marketplace simplifies the byzantine process of buying and selling used cars by setting firm prices, streamlining financing, and offering convenient pickup and delivery. It aims to help shoppers "get the car without the car salesman", and the bulls believe it will eventually become the "Amazon of cars." Its "vending machine" towers, which let buyers pick up their vehicles with big tokens, are also attracting a lot of attention. ExpandNYSE: CVNACarvanaToday's Change(-1.58%) $-5.02Current Price$311.83Key Data PointsMarket Cap$45BDay's Range$304.09 - $315.1252wk Range$171.78 - $486.89Volume717KAvg Vol3.8MGross Margin19.80% From 2020 to 2025, Carvana's total units sold more than doubled from 244,111 to 596,641, its revenue surged from $5.6 billion to $20.3 billion, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins expanded from negative 4.6% to positive 11%. It's also stayed profitable on a full-year basis since 2023. Metric 2020 2021 2022 2023 2024 2025 Units Sold Growth 37% 74% (3%) (24%) 33% 43% Revenue Growth 42% 129% 6% (21%) 27% 49% Adjusted EBITDA Margin (4%) 0.5% (7.7%) 3.1% 10.1% 11% Data source: Carvana. In 2022 and 2023, rising interest rates and a surplus of used vehicles throttled Carvana's growth. But in 2024 and 2025, its growth accelerated again as interest rates declined, the used-car market grew, and it integrated its 2022 acquisition of ADESA's U.S. auction network. It also restructured its debt and cut costs to stabilize its margins. Is Carvana's stock still worth buying? The recent macro headwinds for consumer spending and oil prices have been driving investors away from Carvana and compressing its valuations. But from 2025 to 2028, analysts still expect its revenue and adjusted EBITDA to grow at CAGRs of 26% and 28%, respectively. Carvana claims that by 2030 to 2035, it will be selling at least 3 million cars per year at adjusted EBITDA margins of about 13.5% as economies of scale kick in. With an enterprise value of $47 billion, its stock still looks surprisingly cheap at 16 times this year's adjusted EBITDA. Therefore, I think Carvana's pullback is a great buying opportunity for long-term investors right now.Read NextApr 2, 2026 •By James Brumley3 Monster Stocks to Hold for the Next 10 YearsMar 26, 2026 •By Daniel MillerCarvana Soared 8,800%, but Is Amazon About to Put a Stop to Its Lucrative Growth?Mar 19, 2026 •By Daniel SparksCarvana Stock: Down About 35% in 2026, Is It Finally Time to Buy?Mar 18, 2026 •By Daniel Miller2 Must-See Graphs Explaining Why This Top Stock Is 4,300% Higher -- and Why It Can Keep SoaringMar 18, 2026 •By Daniel MillerUp 4,300%, but the Biggest Reason to Buy Carvana Was Heavily OverlookedMar 17, 2026 •By Daniel MillerWhy in the World Is Carvana Buying Brick-and-Mortar Dealerships?!About the AuthorLeo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors. He became a self-made millionaire by age 40 through long-term investing, crediting lessons from Warren Buffett and Peter Lynch. Leo is a regular guest on CNBC Asia providing stock analysis on Chinese technology companies, including Tencent, Baidu, and Alibaba. He previously wrote for InvestorGuide and holds a bachelor’s degree in English from the University of Texas at Austin.TMFSunLionX@TMFSunLionStocks MentionedCarvanaNYSE: CVNA$311.79(-1.60%)-$5.06AmazonNASDAQ: AMZN$211.74(-0.49%)-$1.05*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.