What Has Carvana (CVNA) Stock Done for Investors?
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The leading online used car retailer is disrupting a huge industry.Carvana (CVNA +4.37%) has been one of the most divisive companies on the market in recent years. Critics have said it operates an unsustainable business model that relies heavily on favorable credit markets to survive. Then there are the bulls that point to Carvana being an innovative disruptor that will continue taking share in the used car industry. Let's take a look at Carvana's performance to see which group's views have proven to be correct. What has this online car retail stock done for investors? Image source: Carvana. Carvana shares have made for a wildly successful investment Carvana shares have underperformed the market in the past five years, putting up a gain of 79% (as of Dec. 15). This comes up short of the S&P 500's total return of 101% over the same time period. Looking at shorter time horizons paints a better picture for Carvana. In the past three years, the stock has skyrocketed 8,420%. And over the last 12 months, it's up 80%. Both of these figures significantly exceed the broader market. Carvana shares hit their low point of $3.72 in late December 2022. That year, investors were rightfully concerned that the business was on the brink of bankruptcy, as debt rose after the $2.2 billion acquisition of ADESA. Carvana's growth had also slowed dramatically, thanks to a combination of higher interest rates and inflationary pressures.Advertisement Management focused relentlessly on cost cuts and operational efficiencies, while also refinancing debt. Carvana's financial results have also been encouraging, which have helped propel monster gains for the stock. Unit volume and revenue jumped 44% and 55%, respectively, in Q3 (ended Sept. 30) on a year-over-year basis. Long-term debt totaled $5.5 billion, down from a peak of $7.5 billion in 2022. And Carvana is consistently profitable on a generally accepted accounting principles (GAAP) basis. ExpandNYSE: CVNACarvanaToday's Change(4.37%) $19.51Current Price$465.74Key Data PointsMarket Cap$63BDay's Range$448.36 - $467.8752wk Range$148.25 - $485.33Volume4.6MAvg Vol3.5MGross Margin20.52% Is it too late for investors to buy? After seeing such a monumental gain, investors are probably thinking that they missed the boat. After all, the business sports a market cap of just under $100 billion. And the market's enthusiasm has never been higher. Carvana continues to stare at a massive opportunity in the domestic used car market, which saw 36 million transactions in 2023. As it builds more scale, it can serve more of the population and see its sales and profits rise. The valuation is expensive, though, with shares trading at a price-to-sales ratio of 3.5. This is not far off the stock's most expensive multiple, which was reached during the 2021 bull market. Investors who decide to buy Carvana today run the risk of overpaying. Maybe it's best to wait for a pullback.Read NextDec 9, 2025 •By James BrumleyWhat to Watch With CVNA Stock in 2026Dec 9, 2025 •By Isac SimonCarvana's 2025 Rally Just Got Another Catalyst: S&P 500 InclusionDec 8, 2025 •By Eric VolkmanWhy Carvana Stock Motored Higher on MondayNov 4, 2025 •By Matthew NestoIs the Party Over for Carvana Stock?Nov 4, 2025 •By Jeremy BowmanCarvana Stock Plunges After Earnings. Warning Sign or Buying Opportunity?Oct 30, 2025 •By Jeremy BowmanWhy Carvana Stock Tumbled TodayAbout the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedCarvanaNYSE: CVNA$465.74 (+0.04%) $+19.51*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement