BY COMFORT OGBONNA
Carvana’s stock climbed sharply in premarket trading on Monday after the online used-car retailer earned a place in the prestigious S&P 500 index. The company’s shares were up 8.6% at $434.35 ahead of the opening bell, positioning the stock to continue its impressive 10-day winning streak.
The announcement came late on Friday, when S&P Dow Jones Indices confirmed that Carvana will officially join the benchmark index on December 22. The move represents a milestone in one of the most remarkable corporate turnarounds in recent years. Just two years ago, Carvana was struggling at record-low share prices amid growing concerns over its mounting debt, weakening demand for used vehicles, and the looming threat of bankruptcy.
Since then, the company has staged an extraordinary recovery. Carvana’s stock has soared more than 8,000% from its 2022 lows, nearly doubling in value in 2025 alone. Improved cost discipline, stronger operational efficiency, and a rebound in consumer demand have allowed the company to return to profitability—an achievement that has significantly boosted investor confidence.
Carvana’s market valuation now stands at roughly $87 billion, surpassing established U.S. automakers such as Ford and General Motors, valued at about $52 billion and $71 billion. The company’s shares currently trade at 57.4 times forward earnings, a striking contrast to the much lower, single-digit multiples of its traditional Detroit competitors.
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