Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona.

Carvana Co.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, незначительно вырос. Рынок на стороне быков.

Weak index, slightly up. The market is on the bulls' side.

Сильный индекс, значительно вырос. Приток средств в лонги на высоком уровне.

Strong index, significantly up. Inflow of funds into longs at a high level.

Carvana (CVNA) reported $7.38 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 52.4%. EPS of $0.42 for the same period compares to $0.26 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $6.99 billion, representing a surprise of +5.55%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.42.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Carvana performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Per retail unit gross profit - Total: $7,014.00 compared to the $6,796.56 average estimate based on four analysts.
Per retail unit gross profit - Retail vehicle: $3,547.00 compared to the $3,282.16 average estimate based on four analysts.
Unit sales - Retail vehicle unit sales: 197,325 versus 198,190 estimated by four analysts on average.
Per unit revenue - Wholesale vehicles: $10,633.00 versus $11,079.20 estimated by three analysts on average.
Unit sales - Wholesale vehicle unit sales: 105,052 versus 97,755 estimated by three analysts on average.
Per retail unit gross profit - Other: $2,666.00 versus $2,853.86 estimated by three analysts on average.
Per unit revenue - Retail vehicles: $27,908.00 versus $25,395.83 estimated by three analysts on average.
Per retail unit gross profit - Wholesale: $801.00 versus the two-analyst average estimate of $952.00.
Sales and operating revenues- Retail vehicle sales, net: $5.51 billion versus the five-analyst average estimate of $4.97 billion. The reported number represents a year-over-year change of +61.7%.
Sales and operating revenues- Other sales and revenues: $526 million versus $559.44 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +28% change.
Sales and operating revenues- Wholesale sales and revenues: $1.34 billion versus $1.28 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +31.2% change.
Gross Profit- Retail vehicle: $700 million versus the three-analyst average estimate of $640.75 million.
Shares of Carvana have returned +0.4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Compared to Estimates, Carvana (CVNA) Q2 Earnings: A Look at Key Metrics

Carvana (CVNA) came out with quarterly earnings of $0.42 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this company would post earnings of $0.28 per share when it actually produced earnings of $0.34, delivering a surprise of +21.43%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Carvana, which belongs to the Zacks Internet - Commerce industry, posted revenues of $7.38 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.55%. This compares to year-ago revenues of $4.84 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Carvana shares have lost about 21.7% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Carvana?
While Carvana has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Carvana was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $7.49 billion in revenues for the coming quarter and $1.63 on $28.31 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Commerce.com (CMRC), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Commerce.com's revenues are expected to be $85.31 million, up 1.1% from the year-ago quarter.
Should You Invest in Carvana Co. (CVNA)?
Before you invest in Carvana Co. (CVNA), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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Carvana Co. (CVNA) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Carvana (CVNA) Matches Q2 Earnings Estimates

(RTTNews) - CARVANA CO. (CVNA) reported a profit for its second quarter that Increased, from last year
The company's bottom line totaled $310 million, or $0.42 per share. This compares with $183 million, or $0.26 per share, last year.
The company's revenue for the period rose 52.4% to $7.376 billion from $4.840 billion last year.
CARVANA CO. earnings at a glance (GAAP) :
-Earnings: $310 Mln. vs. $183 Mln. last year. -EPS: $0.42 vs. $0.26 last year. -Revenue: $7.376 Bln vs. $4.840 Bln last year.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CARVANA CO. Announces Climb In Q2 Bottom Line

(RTTNews) - Tuesday, Carvana Co. (CVNA) announced the expansion of same-day vehicle delivery for customers in the greater Fort Myers area.
Under this, Fort Myers customers selling their vehicles to Carvana can also schedule pickup or drop-off as soon as the same day after completing the company's online vehicle appraisal process.
This initiative is backed by Carvana's first-party logistics network and regional Inspection and Reconditioning Centers.
"We are proud to have served car buyers and sellers in the Fort Myers area for many years, and we're excited to continue improving the experience with the introduction of as-soon-as same-day delivery," said Jacqueline Hearns, Carvana's Senior Director of Market Operations and Expansion.
In the pre-market hours, CVNA is trading at $64.18, up 0.20 percent on the New York Stock Exchange.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Carvana Introduces Same-Day Vehicle Delivery For Greater Fort Myers Customers

Key Points
Carvana entering the new-car business is about much more than new-car sales.
Carvana's move will open new and lucrative revenue streams for its traditional business.
Stellantis' massive $70 billion global turnaround could make it the perfect partner with a long list of upcoming launches and brand investment.
Carvana (NYSE: CVNA) turned many investors' heads when it began scooping up brick-and-mortar dealerships recently. The strategic move seemed to go against the entire company's vision of online used-car sales (we'll get into that in a second). A smaller detail many overlooked was that Carvana opted to buy Stellantis (NYSE: STLA) dealerships primarily, a strange decision given the automaker's long list of recent struggles and receding market share. That said, this strange pairing might just be a match made in heaven for Carvana, and here's why.
What's going on?
At first glance, Carvana scooping up physical dealerships goes against its historic strategy, but in reality, it's attempting to disrupt the age-old dealership model as we know it. As it attempts this strategic pivot, there's also reason to believe the synergy created could reward investors.
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Carvana's physical dealerships still won't sell you a vehicle in person; instead, they're for test drives, showing car capabilities, and helping consumers buy from a larger selection online. What this strategy also does is give Carvana control of the entire trade-in lifecycle. One of the more challenging aspects for Carvana was bringing in valuable used-vehicle inventory. Controlling dealerships that allow consumers to bring trade-in vehicles when purchasing new ones gives Carvana a bloodline of used-vehicle inventory to boost its historical business.
Another aspect of this strategy is that Carvana's acquired dealerships still plan to use the service bay as usual, potentially unlocking additional service revenue from its consumer base that may want to continue doing business with Carvana. What some investors aren't aware of is that while new and used vehicles drive dealerships' top-line revenue, the most profitable aspects, by a large margin, are service and parts, and finance and insurance. Carvana is unlocking the bread-and-butter of dealerships that its traditional online-only business lacked: high-margin maintenance and repair.
The initial results are incredibly intriguing, with its Arizona store booming in sales and becoming a top-selling dealership. More specifically, according to reports from The Wall Street Journal, Carvana's recently purchased Arizona dealership went from averaging 30 to 50 monthly sales to selling more than 700 new vehicles in May, according to Stellantis figures given to CNBC.
Here's why it's a great match
While Stellantis would surely benefit from increased sales across many dealerships, the match is primarily important to Carvana. That's because, at least initially, Carvana has chosen to make Stellantis dealerships its primary purchase. The question is why. The old saying "Buy low, sell high" is a fitting one for this scenario. Stellantis has experienced executive turnover, including the appointment of a new CEO, and it recently unveiled a massive $70 billion global turnaround plan with a strong focus on North America.
Stellantis has faced seemingly endless questions over the past few years about its product decisions, shrinking product lineups, receding market share, delayed launches, and uncertainty about the future of some of its many brands. That story is likely to change over the next five years as 11 new vehicles are headed to the U.S. market as Stellantis is committing 70% of its future investment into four primary brands. Two of them -- Ram and Jeep -- are focused on turning around Stellantis' North America market.
Furthermore, a growing concern has been rising new-car prices. Some analysts have called this an affordability crisis. This gives Stellantis, and by extension Carvana, the opportunity to quickly boost sales from the growing consumer demand for more affordable vehicles. In fact, at least nine upcoming models are targeting launch prices starting under $40,000, and two are targeting under $30,000. Stellantis' reduced focus on less-profitable, typically pricier electric vehicles (EVs) could also help Carvana's early efforts in the new-car business.
What it all means for Stellantis and Carvana
At the same time, Stellantis' struggles have given Carvana an opportunity to purchase dealerships at lower prices than in the past. It also strategically pivots to a company putting up tens of billions to revive market share, product lineups, and brand identity. You could argue that Stellantis, because of its massive investment and potential turnaround, could be the best dealership partner over the next five years as Carvana fine-tunes its new strategy to disrupt the industry.
It's certainly a strange pairing, considering Carvana's history of used-car and online-only sales, but it might just be a match made in heaven over the next five years, especially if early results continue. As far as these two companies go, this is a much bigger deal for Carvana. Not only is it perhaps timing the brands of physical dealerships perfectly, considering Stellantis' upcoming massive investment in product and branding, Carvana opening the doors to new-car sales will give it entirely new revenue and profit streams, including servicing that is higher margin, that its historical business has lacked. If Carvana executes its strategy and disrupts the new-car dealership model, its earnings and stock price could soar over the next five years.
Should you buy stock in Carvana right now?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

A Strange Pairing Between Stellantis and Carvana Is a Match Made in Heaven

Chewy, Inc. CHWY believes pet healthcare remains one of its largest long-term growth opportunities, supported by an estimated total addressable market of around $54 billion. Chewy Vet Care clinics continue to generate strong stand-alone economics while serving as effective customer acquisition and retention channels for the broader ecosystem. The shortage of veterinarians also provides Chewy with a structural advantage as it expands its veterinary clinic network.
To support this strategy, the company completed the acquisition of Modern Animal. Management noted that Modern Animal adds a complementary clinic footprint, strong clinical expertise and a technology-enabled operating model aligned with Chewy Vet Care. The acquisition is expected to accelerate clinic expansion by combining Chewy Vet Care’s organic growth with Modern Animal’s existing footprint and development pipeline, with the combined business projected to operate approximately 60 clinics by the end of fiscal 2026 and generate an embedded steady-state revenue contribution of about $290 million.
The company noted that Chewy Vet Care continues to strengthen the broader Chewy ecosystem by attracting new customers to the platform while encouraging existing customers to increase their spending following their initial clinic visit. This demonstrates the strategic value of its integrated pet healthcare offering by supporting customer acquisition, retention and a greater share of wallet, while reinforcing the company's long-term growth strategy.
Additionally, technology-enabled workflows and AI-assisted tools are driving strong veterinary productivity, retention and employee satisfaction. Combined with Chewy’s recurring revenue model, scaled fulfillment network and expanding healthcare platform, these capabilities support its long-term 10% adjusted EBITDA margin target. Overall, Chewy's expanding healthcare ecosystem strengthens its competitive moat by enhancing customer acquisition, retention and share of wallet while supporting long-term profitability.
Zacks Rundown for CHWY
CHWY shares have lost 25.3% in the past three months compared with the industry’s 2.6% decline. The company carries a Zacks Rank #5 (Strong Sell) at present.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a forward price-to-earnings ratio of 21.74, lower than the industry’s average of 21.84.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings for the current and next fiscal year indicates year-over-year growth of 20.5% and 21.7%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Phibro Animal Health Corporation PAHC operates as an animal health and mineral nutrition company in the United States, Latin America and Canada, Europe, the Middle East, Africa, and the Asia Pacific. PAHC currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for PAHC's current fiscal-year sales and earnings implies growth of 14.8% and 47.4%, respectively, from the year-ago actuals. PAHC delivered a trailing four-quarter earnings surprise of 16.3%, on average.
Carvana Co. CVNA, currently carrying a Zacks Rank #2, operates an e-commerce platform for buying and selling used cars.
The Zacks Consensus Estimate for CVNA’s current financial-year sales implies growth of 38.5%, and the same for earnings implies a decline of 6.5% from the year-ago reported numbers. CVNA delivered a negative trailing four-quarter earnings surprise of 71.6%, on average.
Amazon.com Inc. AMZN engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally. At present, Amazon carries a Zacks Rank of 2.
The consensus estimate for Amazon’s current fiscal-year sales and earnings implies growth of 15.2% and 29.6%, respectively, from the year-ago figures. AMZN delivered a trailing four-quarter earnings surprise of 11.4%, on average.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How Pet Healthcare Could Shape Chewy's Future Growth & Profitability?

Key Points
Carvana's dealership purchases give it an entry into selling more than used cars.
Focusing on using its online-strategy and reducing new-car sale overhead could prove lucrative.
Carvana will still offer its own financing, and dealership service bays will operate as normal.
It's a shame that Carvana (NYSE: CVNA) doesn't have its headquarters in Las Vegas, because it's been quite a magic show. Years ago, there were legitimate questions about whether the company was heading into bankruptcy. Then, through a series of moves, management turned everything around and began to thrive as consumers adopted the online-sales strategy. If you had invested $10,000 in Carvana three years ago, it would be worth over $140,000 now.
For its next magic trick, the company is going to scoop up a bunch of brick-and-mortar dealerships, expand into new-car sales, and refuse to sell you a vehicle in person. Sounds crazy, right? My prediction to the rest of the industry: It's going to work scarily well.
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What's the scoop?
Ask any used-car retailer, and they'll probably tell you Carvana has built a better mousetrap and disrupted its industry. Evidence backs that up: The company's $70 billion market capitalization makes it the most valuable auto retailer in the U.S.
Carvana spent $171 million to buy seven Stellantis dealerships as its way to break into new-car sales for incremental revenue and profits, but it's so much more than that. And, just as importantly, it isn't breaking away from its online-sales mousetrap that has worked so well.
If you want to buy a new car in person, spend all day at a dealership, haggle with commission-based salespeople, and work through paperwork for financing, then go across the street. But Carvana is replacing stereotypical salespeople and offices; instead, it will have couches and chairs and a small staff only to help if you need advice browsing its online selection, customizing options online, or test-driving vehicles.
Essentially, the auto dealer is removing much of the overhead for a typical new-car sales process, and this is important. What most investors might not know is that selling new cars isn't the lucrative part of owning a dealership. Since Carvana hasn't opened its books for this new business segment, let's use AutoNation as a benchmark of a huge auto retailer that has opened its books.
During the first quarter of 2026, new and used vehicles combined to generate 76% of AutoNation's total revenue, and yet those two segments combined to generate only 22% of gross profit. The lucrative part of owning a dealership comes from two other segments: parts and service (P&S), and finance and insurance (F&I). Those two segments generated only 24% of AutoNation's first-quarter total revenue, but 78% of total gross profit.
The good news is that Carvana is offering financing online through its own loans backed by Ally Financial, and its dealerships' service bays will continue to operate as normal.
There already is evidence it's working
The first new-car dealership purchased by Carvana is in Casa Grande, Arizona, and it has grown impressively. According to Stellantis data shared with CNBC, that one dealership sold over 700 new vehicles in May. That dwarfs the same store's prior average of between 30 to 50 new vehicle sales before Carvana took over, per The Wall Street Journal.
It gets better, too, because while Carvana's used-car business is already lucrative, the company still needs to get its hands on more valuable inventory, and consumers trading in vehicles checks that box.
Any questions?
There are still many questions to answer. Can Carvana cut enough new-car sales overhead to improve the profitability of this segment beyond that of traditional dealerships? Can management find a way to synergize its huge online used-car business with a handful of brick-and-mortar new-car dealerships? Will it consider expanding its handful of dealerships beyond Stellantis?
My prediction is that Carvana's Arizona store is not a one-hit wonder, and its online-sales strategy will work and disrupt the legacy 16,990 new-car retailers and their $1.3 trillion market. While it's doing that, it's going to synergize new and old parts of its business, generate new revenue streams, build its competitive advantages, expand its shipping points and reach, and evolve into a more lucrative overall business.
Despite refusing to sell you a new vehicle in person, Carvana's new-car mousetrap makes a lot of business sense.
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Ally is an advertising partner of Motley Fool Money. Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: Carvana's New-Car Business Will Work. Early Numbers Are Stunning.

Carvana Co. CVNA, a leading e-commerce platform for buying and selling used cars, isn't just selling more used cars—it's spending aggressively to ensure more consumers know, trust and choose its online car-buying platform.
Carvana increased its advertising expense by $92 per retail unit sold in the first quarter of 2026 as it continued investing in building customer awareness, understanding and trust in its online car-buying platform. The company currently holds nearly 2% of the U.S. used-vehicle retail market, while e-commerce adoption across other retail categories is around 20%, suggesting that online used-car retail remains in the early stages of adoption.
As Carvana scales, it expects to achieve meaningful SG&A leverage through continued operational efficiencies and greater absorption of fixed costs. Increasing awareness, understanding and trust is one of the company's three key growth pillars.
Carvana believes it is still in the early stages of telling its story to consumers and therefore sees ample opportunity to continue investing in advertising. The company expects its marketing efforts to remain broad-based across multiple channels to reach diverse customer segments. Although Carvana did not provide specific guidance on future advertising spending, its advertising expense per retail unit has remained relatively consistent over the past two to three quarters, which it considers a reasonable baseline going forward.
While Carvana is focusing on advertising to expand awareness of its online marketplace, other automotive retailers are pursuing digital strategies of their own to improve customer experience, increase efficiency and support profitability. CVNA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lithia Motors, Inc.’s LAD digital platforms, Driveway and GreenCars, are helping boost profitability and expand its market presence. These e-commerce platforms let customers buy, sell and service vehicles online. Early results from Lithia’s investment in Wheels, a top fleet management company, are also strong. Its minority stake in Wheels creates powerful synergies between retail and fleet operations. Together, these moves strengthen Lithia’s mobility ecosystem and support customer retention and long-term profitability.
Group 1 Automotive, Inc. GPI is steadily improving its sales process through digital tools, moving beyond just generating online leads to closing deals faster and at lower cost. Virtual finance and insurance are now available in about one-third of Group 1’s U.S. stores and handle roughly 20% of deals there, with positive customer feedback and lower compensation costs. At the same time, tools like AcceleRide, along with AI-based scheduling and CRM platforms, are helping Group 1 work more efficiently, improve deal conversions and deliver more consistent performance across its dealerships over time.
Carvana’s Price Performance, Valuation and Estimates
Carvana has underperformed the Zacks Internet – Commerce industry in the last six months. CVNA shares have plunged 20.2% compared with the industry’s decline of 4.8%.
Image Source: Zacks Investment Research
From a valuation perspective, Carvana appears overvalued. Going by its price/sales ratio, the company is trading at a forward sales multiple of 2.37, higher than its industry’s 1.99.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Carvana’s 2026 and 2027 EPS has moved up 6 cents each in the past 60 days.
Image Source: Zacks Investment Research
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
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Carvana Co. (CVNA) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Does Carvana See Advertising as a Crucial Growth Engine?

Key Points
In addition to the rise of artificial intelligence (AI), stock-split euphoria has helped lift Wall Street's major stock indexes to new heights.
Stock splits come in two varieties, with investors decisively favoring one (forward splits) over the other (reverse splits).
Wall Street's premier AI-driven cybersecurity stock is splitting its shares -- but investors should be mindful of this company's premium valuation.
While artificial intelligence (AI) has been Wall Street's primary catalyst for years, it's not the only trend responsible for lifting the tide. Investors' excitement over high-profile stock splits has played a role in sending Wall Street's major indexes to new heights.
Since the year began, online travel site Booking Holdings and e-commerce-based used-vehicle retailer Carvana have been two of the most talked-about stock-split stocks. Today, arguably the most prominent stock split of the year goes into effect, courtesy of AI-powered cybersecurity solutions provider CrowdStrike Holdings (NASDAQ: CRWD).
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Stock splits come in two varieties
A stock split is an event that allows a public company to cosmetically adjust its share price and outstanding share count. This change is superficial in the sense that it doesn't alter a company's market cap or its underlying operating performance.
Retail investors' excitement about a stock split often depends on which type of split is being completed. Reverse splits, which are designed to increase a company's share price, are usually shunned by investors. Companies enacting a reverse split are typically struggling and attempting to avoid delisting from a major stock exchange.
On the other hand, investors typically flock to businesses announcing forward stock splits. This type of split aims to make a company's shares more nominally affordable for retail investors who can't buy fractional shares through their broker.
CrowdStrike has effected a 4-for-1 forward split before today's (July 2) opening bell. The company's share price, which has been hovering around $700, will be reduced to roughly $175, and its outstanding share count will quadruple. This'll make it easier for everyday investors to participate in the CrowdStrike growth story.
CrowdStrike possesses well-defined advantages (but is also very pricey)
Shares of CrowdStrike Holdings have soared more than 1,100% since its initial public offering (IPO) in June 2019. This outsize gain is a function of its laundry list of competitive advantages.
On a macro basis, cybersecurity has evolved from a premium for businesses to a necessity. Since hackers don't take holidays, cybersecurity software is always in demand.
CrowdStrike's Falcon security platform is driven by AI and machine-learning solutions, making it more adept than on-premises security solutions at recognizing and responding to potential threats. Though Falcon isn't the cheapest option in the end-user cybersecurity arena, CrowdStrike's high-90% gross retention rate signals superior protection.
Staggering growth.
CrowdStrike has now grown revenue at more than a 50% CAGR over the last decade.$CRWD pic.twitter.com/4I1UcFqzUA
-- Fiscal.ai (@fiscal_ai) June 4, 2026
But the clearest evidence that Falcon is resonating with its customers is the company's add-on sales data. In its latest reported quarter, CrowdStrike notes that 51% of its clients have purchased six or more cloud modules, with 25% supporting eight or more. Add-on sales are a big deal when talking about software-as-a-service solutions that boast an adjusted gross subscription margin of around 80%.
But despite CrowdStrike's jaw-dropping sales growth and otherworldly margins, its stock isn't cheap. History shows that companies at the forefront of game-changing trends haven't been able to sustain price-to-sales (P/S) ratios above 30. CrowdStrike closed out June 26 with a P/S ratio of 35, placing it firmly in bubble territory.
While CrowdStrike's operating results demonstrate that it's firing on all cylinders, there's not much meat left on the bone for investors.
Should you buy stock in CrowdStrike right now?
Before you buy stock in CrowdStrike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CrowdStrike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $385,055!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,228,089!*
Now, it’s worth noting Stock Advisor’s total average return is 902% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 2, 2026.
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Booking Holdings and CrowdStrike. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wall Street's Blockbuster AI Stock Split of 2026 Has Arrived -- and This Supercharged Growth Stock Has Soared More Than 1,100% Since Its IPO

Key Points
Carvana surprised many when it began scooping up brick-and-mortar automotive dealerships.
The strategic move will open new doors for additional revenue streams and higher-margin business.
Adding brick-and-mortar dealerships will help diversify its business and create opportunities for lucrative growth.
To say Carvana's (NYSE: CVNA) past five years have been a roller coaster could be the understatement of 2026. Carvana, one of the nation's largest used-car retailers, was on the brink of bankruptcy in late 2022 due to a pandemic-era decline in used-car demand, high interest rates, and a large acquisition that added to its debt pile.
The company pulled together, restructured its debt, which was a huge relief to near-term debt maturities and massive interest burdens on said debt, and has since thrived. In fact, if you had invested $10,000 in Carvana three years ago, the value of that investment would be approaching $130,000 today. Here's the wild part: Rather than being on the brink of bankruptcy, Carvana might be on the brink of disrupting a whole new business segment -- and its stock could soar again.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Carvana built a better mousetrap
Carvana surprised a whole bunch of investors when it announced it was buying a handful of brick-and-mortar automotive dealerships, seemingly at odds with the online-only business model that enabled it to thrive in recent years. Carvana dipping its toes into the brick-and-mortar world is far more complex and intriguing than simply beginning sales of new vehicles, and it could drive the business to new heights.
The more amusing part of the strategy is that it's still not going to sell you a new car at the brick-and-mortar dealership. Rather than merge into the world of dealerships, salesmen, and traditional new-vehicle sales methods, Carvana is using these dealerships as service locations and test-drive centers to connect with consumers in a new way and lead them to the online service for purchase.
If you're raising your eyebrow in skepticism, take a look at the next figures. Carvana's first new-car dealership, a Stellantis (NYSE: STLA) franchise in Casa Grande, Arizona, sold more than 700 new vehicles last month, CNBC reported. Not only did that dwarf the dealership's previous average of roughly 30 to 50 monthly sales before Carvana took over, according to The Wall Street Journal, but it also turned it into the nation's best-selling store.
This strategy not only opens the door to new revenue streams via new-car sales, but it is also much more than that. Purchasing dealerships opens the door for Carvana to bring in more vehicle inventory through trade-ins and/or buying vehicles from not only its customers but also through exclusive auctions only open to franchised dealers. This is a big deal and a cheaper way to turn inventory into bottom-line profits.
But wait, there's more
Automotive retail can generally be summarized into four distinct areas of value: new vehicle sales, used vehicle sales, parts and service (P&S), and finance and insurance (F&I). Previously, Carvana obviously was thriving on its used-car online business and also offered finance and insurance. Now it can cover all aspects of automotive retail, which includes the higher-margin parts and service segment.
Saying parts and service is a higher-margin business doesn't do it justice. Using AutoNation as a benchmark, as one of the largest publicly traded dealership groups, investors have great insight into how the numbers from revenue to gross profit flip completely in the auto retail business.
This first pie graph (revenue) probably splits the automotive retail pie roughly as investors expect, driven largely by, of course, new and used vehicle sales.
Here's where the auto retail business gets intriguing when looking at gross margins.
In other words, while AutoNation's P&S segment generated only 19% of first-quarter revenue, it generated almost half of the company's gross profit. Taking it a step further, while F&I and P&S are likely afterthoughts for many investors, the two combined accounted for 78% of AutoNation's gross profit during the first quarter.
Let's refocus
OK, that's a lot to digest, and for many investors it might be eye-opening. Let's refocus more broadly on why Carvana's strategic move to buy dealerships is a huge win and summarize three key points.
First, the move to buy dealerships gives Carvana access to new-car buyers with trade-in vehicles and to exclusive dealership vehicle auctions. Both are cheaper ways to acquire inventory, which, thanks to Carvana's online reach, only improves the company's economic moat and competitive advantages. Traditional dealerships can generally only sell local inventory to local customers, whereas Carvana can sell you a vehicle from one side of the nation to the other -- and now it has even more inventory access to offer, luring in more customers.
Second, this opens two new doors for Carvana's business. Yes, it had already been thriving in used-car sales and covered F&I, but now it covers the other two aspects of auto retail via new-car sales and P&S. These are incremental and additional revenue streams that will drastically boost its overall business.
Third, diversification plays a big role in Carvana's strategic decision to buy dealerships. Carvana was on the brink of bankruptcy in part due to a struggling used-car market. Adding new-vehicle sales to the mix helps diversify its top and bottom lines, because sometimes one sector of the auto retail business is hot, and one is not. And in cases when both of those sectors are not hot, P&S still does great business because if a car needs repairs, or warranty and recall work, it doesn't matter what the new and used retail markets are doing.
Time to buy?
Carvana could continue to buy brick-and-mortar dealerships while never selling a vehicle on-site ever, and it could still completely change the game, as shown by the instant success its Arizona dealership is having. That's because this strategy really isn't about traditional dealership sales. Consider that Carvana has roughly seven dealerships purchased out of about 16,990 retailers in the U.S. market. Those nearly 17,000 retailers generated $1.3 trillion in sales last year alone, leaving incredible growth ahead. Carvana's strategic pivot was wild, caught many off guard, and it's brilliant.
It took three years for Carvana to turn a $10,000 investment into $130,000, and if the company continues to buy dealerships, it will likely take longer to build into a repeat scenario. But it may not be the last time Carvana turns a $10,000 investment into a 10-bagger.
Should you buy stock in Carvana right now?
Before you buy stock in Carvana, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Carvana wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $392,713!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,227,782!*
Now, it’s worth noting Stock Advisor’s total average return is 897% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.