New York, Feb 2, 2026, 16:23 EST — After-hours
- Carvana shares climbed roughly 1.7% in after-hours trading Monday.
- The stock has bounced around since a short seller raised concerns about related-party ties last week.
- All eyes shift to Carvana’s results and conference call scheduled for Feb. 18.
Carvana Co. shares nudged up in after-hours Monday, adding to a turbulent run for the used-car retailer’s stock.
This shift is crucial as the market wrestles with two conflicting narratives: one sees a turnaround driven by rising profits and leaner costs; the other raises doubts about how much of that progress hinges on affiliated lenders and related entities.
With earnings just two weeks off, traders are heavily focused on positioning. As a result, the stock reacts sharply to headlines, even when they don’t bring much new information.
Carvana closed the regular session at $393.04 before rallying about 1.7% in after-hours trading to $407.83. Throughout the day, shares fluctuated between $390.23 and $418.99.
Rivals held steadier ground. CarMax gained roughly 0.6%, while AutoNation crept up around 0.2% in late trading.
The overhang stems from a report by short seller Gotham City Research, accusing Carvana of inflating profits by about $1 billion in 2023 and 2024 via undisclosed related-party transactions. Short sellers, who wager on stock declines, pushed the claim. Carvana pushed back, insisting all related-party transactions were properly disclosed. (Barron’s)
JPMorgan’s Rajat Gupta challenged the figures in the short report, calling it “an incorrect representation of service income.” He also expressed surprise at how sharply the stock moved in response. (Investing)
BTIG analyst Marvin Fong pushed back on key points of the short report, saying, “We disagree with the DriveTime leverage calculation” and questioning other assumptions, according to a summary of his note by Investing.
Right now, it’s all about confidence. If investors buy into the idea that the company’s profits and cash flow will hold up, the stock could steady. But if skepticism creeps into lenders or ratings agencies, things could unravel quickly.
A major risk lies in the allegations shifting attention away from operations and onto financing and disclosure. Carvana depends heavily on funding markets connected to auto loans, so any lasting damage to its credibility could push up costs or tighten terms—even if no formal measures are taken.
Carvana’s fourth-quarter and full-year earnings drop Feb. 18 after the close, with a conference call set for 5:30 p.m. ET. (Carvana)
