NEW YORK, January 29, 2026, 18:37 (EST) — Post-market
- After sharp swings on Thursday, Carvana shares climbed 4.3% in after-hours trading.
- A Gotham City Research short report triggered a 14% plunge the previous day, alleging the company overstated earnings by more than $1 billion.
- JPMorgan, William Blair and BTIG analysts came out in defense of the company; all eyes now shift to earnings on Feb. 18.
Carvana Co. shares climbed 4.3% to $427.44 in after-hours on Thursday, clawing back some steep losses from the previous day. During regular hours, the stock fluctuated between $409.92 and $444.44, with roughly 6.9 million shares traded.
The rebound came after Carvana’s shares tumbled 14% on Wednesday, triggered by a short-seller report from Gotham City Research. The firm challenged Carvana’s connections to affiliated companies like DriveTime and Bridgecrest, accusing the used-car retailer of overstating earnings by over $1 billion via related-party transactions. Carvana has pushed back against those allegations. 1
Here’s why it matters now: Carvana isn’t just about used cars; it’s also a story driven by heavy financing. When questions arise about loan economics, the stock reacts sharply, since the cost of capital touches everything—from inventory to customer financing.
Gotham claimed Carvana’s 2023-2024 earnings were “overstated by $1 billion+” and far more reliant on related-party transactions than previously revealed. The firm also forecasted a delay in Carvana’s annual report and predicted its auditor would step down. A disclaimer on Gotham’s website warns it could profit if the stock declines. 2
Carvana dismissed the claims, labeling the report “inaccurate and intentionally misleading,” and insisted that all related-party transactions had been fully disclosed. 3
On Thursday, analysts pushed back, calling the market’s initial reaction overblown. JPMorgan’s Rajat Gupta flagged “an incorrect representation of service income” in the report, claiming some discrepancies were exaggerated by roughly “~20x.” BTIG’s Marvin Fong challenged its leverage and servicing-fee figures, while William Blair’s Sharon Zackfia highlighted Carvana’s ongoing strong consumer appeal. 4
JPMorgan maintained its Overweight rating and bumped the price target up to $510 from $490 in a distinct fourth-quarter preview note. 5
But the short report has thrust Carvana right back into a familiar cycle: headlines first, fundamentals catching up afterward. If lenders or buyers of asset-backed securities — bonds secured by pools of auto loans — start pushing for higher yields, financing costs can spike quickly.
Carvana faces a crucial moment on Feb. 18, reporting fourth-quarter and full-year 2025 results after the market closes, with a 5:30 p.m. ET earnings call to follow. Investors want clear updates on related-party transactions, loan sales, and the company’s strategy for funding future growth. 6
