Cramer Reaffirms Bullish View on Carvana After Massive Run
His on-air call follows investor letters citing record sales with rising profitability.
Overview
- On his show, Jim Cramer said Carvana's stock is going higher, while noting the shares have already had a huge run.
- Cramer praised CEO Ernie Garcia’s business model and said he has supported the stock since it traded in the teens.
- An Optimist Fund letter highlighted record Q3 2025 performance with 143,280 retail units sold and $4.84 billion in revenue, plus adjusted EBITDA of $601 million.
- The same letter said management raised 2025 adjusted EBITDA guidance to $2.0–$2.2 billion, up from $1.38 billion in 2024.
- CoinCentral noted the rally’s scale and valuation debate, citing gains of 8,959.2% over three years and a 102.5x P/E alongside a DCF estimate that implies 41.8% overvaluation.