What Happened?
Shares of online used car dealer Carvana (NYSE: CVNA) jumped 2.7% in the morning session after JPMorgan raised its price target on the stock to $490 from $425, and the company launched same-day vehicle delivery in San Diego.
The bank kept its "Overweight" rating on the shares and added Carvana to a "Positive Catalyst Watch" list before its upcoming third-quarter report. The move signaled JPMorgan's belief that Carvana would report strong quarterly results that beat expectations. In addition to the positive analyst sentiment, the online car retailer announced the launch of same-day vehicle delivery in the greater San Diego area, allowing select customers to receive their purchased vehicle on the same day they place an order online.
After the initial pop the shares cooled down to $348.94, up 3.3% from previous close.
Is now the time to buy Carvana? Access our full analysis report here.
What Is The Market Telling Us
Carvana’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock dropped 5.2% on the news that President Donald Trump threatened to impose 'massive' new tariffs on Chinese goods.
In a post on his Truth Social network, Trump stated that his administration is calculating a 'massive increase of Tariffs on Chinese products.' Trump targeted China's tightening controls on rare earth metals, which are vital components in many technology products from electric vehicles to defense systems. The threat immediately impacted the market, with the tech-heavy Nasdaq sinking 2.4% and the broader S&P 500 falling 1.7%. Such tariffs could significantly disrupt the global supply chains that many technology companies rely on for manufacturing and components. The policy uncertainty also raises fears of retaliatory measures from China, which could impact sales in a key international market for many U.S. tech firms, leading to investor concern over future profitability.
Earlier in the week, China announced new export controls on the critical minerals. Beijing's Commerce Ministry stated that foreign suppliers now need government approval to export products containing certain rare-earth materials. These materials are essential for producing high-tech goods, including computer chips, electric vehicles, and defense technology. Analysts viewed the move as a strategic assertion of China's dominance in the global rare earth supply chain, particularly amid ongoing trade tensions.
Carvana is up 74.9% since the beginning of the year, but at $348.94 per share, it is still trading 11.8% below its 52-week high of $395.41 from September 2025. Investors who bought $1,000 worth of Carvana’s shares 5 years ago would now be looking at an investment worth $1,815.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.