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. (Barron’s)
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. (gothamcityresearch)
Carvana dismissed the claims, labeling the report “inaccurate and intentionally misleading,” and insisted that all related-party transactions had been fully disclosed. (Financial Times)
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. (Investing)
JPMorgan maintained its Overweight rating and bumped the price target up to $510 from $490 in a distinct fourth-quarter preview note. (TipRanks)
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. (Carvana)
