Carvana Short-Seller Losses Hit $3.9 Billion as Stock Soars

Carvana Co. experienced a significant stock surge, increasing short-seller losses to $3.9 billion as the stock climbed over 1,500% annually. This increase followed an unexpectedly strong first-quarter earnings report. Despite this growth, Carvana's stock remains well below its 2021 peak. Analysts remain cautious, with mixed ratings and a consensus that suggests potential downside.

Recent upgrades by JPMorgan and William Blair reflect growing optimism after Carvana's earnings beat, projecting substantial growth in adjusted earnings through 2025. This turnaround contrasts sharply with the company's financial struggles just two years prior, signaling a potential shift in Carvana's market position.