A worker unloads a vehicle from a flatbed truck at a Carvana vending machine location in Uniondale, N.Y. (Angus Mordant/Bloomberg)
December 11, 2025 10:15 AM, EST
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Carvana Co. shares extended their rally to a record 12th straight session ahead of the online used-car dealer’s entry into the S&P 500 Index this month.
The stock closed up 2.5% at an all-time high of $467.67 on Dec. 10. The shares of Carvana, which went public in 2017, climbed over 50% from Nov. 21 close, the session before the run of gains began, and have added over $33 billion to the valuation over that stretch.
The strength follows strong third-quarter results, reported in late October, that was met with a lukewarm response from investors. However, as more auto dealers reported lackluster numbers, Carvana’s resilient performance started to stand out, analysts said.
“Its online model continues to gain traction which has helped improve margins,” said Dec Mullarkey, managing director at SLC Management. “Investors have noticed the progress and have been impressed with its execution and momentum.”
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The S&P 500 entry, announced Dec. 5, has added fuel to the shares’ ascent. S&P Dow Jones Indices said Carvana will join along with CRH Plc and Comfort Systems USA Inc. The first day Carvana trades in the index will be Dec. 22.
Inclusion in the S&P 500 typically boosts a company’s shares as investment in the broader index can increase demand for the stock.
Barclays, Evercore ISI and Bank of America analysts raised their price targets on Carvana following the announcement. William Blair gave it an “honorable mention” in the firm’s top stock picks of 2026.
Bank of America’s Michael McGovern, who raised his price target on the company to $455 from $385, said he first identified inclusion in the index as a potential catalyst in June as Carvana met the gauge’s requirements for several quarters.
As McGovern saw it, Wall Street had grown slightly skeptical on the likelihood of inclusion.
The used car industry has faced numerous challenges of late. Both a major auto lender and a parts supplier have tumbled into bankruptcy in recent months, loan delinquencies have surged, car prices have risen and the financial health of some consumers is in question.
“For those who are more financially strapped, used cars are more attractive,” said Matt Maley, chief market strategist at Miller Tabak + Co. “Given the K-shape of the U.S. economy right now, that should help used car sales improve in 2026.”
