Can Used Car Retailer Carvana Repeat its 1000% Legend in 2023?

Carvana's shares surged over 30% after reporting its first-ever profit and forecasting core current-quarter profit to exceed $100 million.

In the premarket trading, $Carvana Co.(CVNA)$ already sets a fresh 52-week-high, hitting $70.

After experiencing a surge during the COVID period and a sharp decline in 2022, CVNA achieved an over 1000% increase in 2023.

Will its remarkable growth continue this year?

Let’s look at key earnings data.

Net income of $450 million for 2023, compared to a loss of $1.59 billion in 2022. (Increase by 128%)

Net debt decreased to $5 billion, down more than $1 billion, while interest payments rose to $632 million.

Carvana's retail gross profit per unit significantly increased, reaching over $5,500 in 2023, compared to $3,022 in 2022.

The company achieved profitability by cutting costs, including trimming inventory and reducing advertising expenses.

There is another meme stock $Palantir Technologies Inc.(PLTR)$ also posted first profitable quarter in this earnings season.

How do you view?

Can Carvana repeat its legend in 2023?

What’s your target price?