NEW YORK, May 9, 2026, 16:07 (EDT)
- Carvana ended Friday at $77.94, slipping 2.58% as shares changed hands following the company’s five-for-one split.
- Carvana’s share price dropped after shareholders signed off on the split during the company’s May 5 annual meeting, according to a filing.
- The real hurdle ahead isn’t the split—it’s whether Carvana manages to push unit sales and profits higher, even as vehicle prep and shipping costs stay in the spotlight.
Carvana Co. slipped 2.58% to $77.94 on Friday, its first session after the share split, with 6.96 million shares changing hands. The move puts a lower sticker price on one of the market’s most-watched turnaround names, but doesn’t alter the company’s fundamental pitch to investors.
The five-for-one stock split arrives on the heels of Carvana’s record-setting first-quarter sales and profits. Splitting the stock lifts the share count and trims the price per share, but by itself, it leaves the company’s valuation unchanged.
Carvana shareholders signed off on the split during the company’s May 5 annual meeting, according to a filing. Each Class A and Class B share was set to be divided into five, with trading on the New York Stock Exchange slated to kick off at the new, split-adjusted price when the market opens May 8.
Carvana moved 187,393 retail units in the first quarter, a jump of 40% compared to last year. Revenue climbed 52%, totaling $6.432 billion. Net income clocked in at $405 million, while adjusted EBITDA—which excludes interest, taxes, depreciation, amortization and a handful of other items—reached $672 million.
Carvana’s CEO Ernie Garcia pointed out the company just notched its “sixth consecutive quarter of 40% or greater” year-over-year retail unit growth. Looking ahead, the company anticipates both retail units sold and adjusted EBITDA will tick higher in the second quarter—provided the broader market environment holds steady. Carvana Investors
Management pitched the split as a move to improve access, specifically citing employees. Back in March, Chief Financial Officer Mark Jenkins called it Carvana’s first-ever split and said the change was about keeping shares “accessible to all of our team members.” Carvana Investors
That’s the simple bit. The tougher question: how much staying power do Carvana’s profit improvements really have, following the company’s rebound from balance-sheet strains and aggressive cost reductions? After first-quarter numbers, Reuters noted that demand for preowned vehicles remains solid, with average new-car prices in the U.S. holding close to $50,000—enough to tip some buyers into the used market.
Retail gross profit per unit—retail GPU—remains the key metric to watch. This figure tracks Carvana’s profit on each retail vehicle, before company-wide expenses hit the books. Jenkins, addressing investors, said to expect retail GPU to climb from the previous quarter but come in lower than the same period last year. Reasons: shipping fees have eased, but non-vehicle costs have ticked up, and wholesale-to-retail spreads are getting squeezed.
The split doesn’t fix Carvana’s cost issues. Any delays or overruns in reconditioning — that’s the inspection, repair, and prepping before cars go back on sale — will eat into per-car margins, even if unit sales keep climbing. Garcia told analysts they were running “just shy” of their top labor efficiency this April, but admitted there’s still “a ton of work to do.” The Motley Fool
Peer stocks showed no clear direction. CarMax gained 1.08% on Friday, according to MarketWatch, but Carvana dipped 2.58% and ACV Auctions slipped 1.38%. That doesn’t point to a blanket rally—or selloff—across used-car retailers.
Wall Street is zeroing in on execution again. On May 5, William Blair’s Sharon Zackfia reiterated her Buy call on Carvana, telling TipRanks the stock split left her earnings view untouched. She did, however, caution about inventory depreciation, credit trends, and the outlook for big-ticket purchases.
Right now, CVNA just shows up with a lower price tag after the split. The trickier figure sits under the hood—what Carvana actually pockets per car once it’s done buying, rehabbing, financing, and handing over the keys.
