Jim Cramer on Carvana: "The Stock Is Going Higher"

Carvana Co. (NYSE:CVNA) is one of the stocks Jim Cramer expressed thoughts on. During the lightning round, a caller inquired about Cramer’s thoughts on the stock, and he replied:

“Here’s the answer about Carvana: the stock is going higher. Now, it may not just continue to go higher because it just had a huge run, but I have been behind this stock since it was a teenager, and I’m continuing to do so. I think Ernie Garcia has a better model than anybody else.”

Carvana Co. (NYSE:CVNA) operates an online platform for buying and selling used cars and also runs auction sites. Optimist Fund stated the following regarding Carvana Co. (NYSE:CVNA) in its third quarter 2025 investor letter:

“Carvana Co. (NYSE:CVNA) – Carvana continues to deliver strong performance, posting record highs across nearly every key financial metric. Retail units sold rose 41% year over year to 143,280 vehicles — the highest in company history — while total revenue increased 42% to $4.84 billion.

Adjusted EBITDA reached $601 million, good for a 12.4% margin, more than 2x industry average profitability.

Even after its strong growth, Carvana estimates its U.S. market share is still only about 1.5%, underscoring a large runway for expansion.

Management expects retail unit growth to continue sequentially in the third quarter and raised its full-year 2025 outlook for adjusted EBITDA to between $2.0 billion and $2.2 billion, up from $1.38 billion in 2024. Longer term, the company continues to target 3 million annual retail units with a roughly 13.5% adjusted EBITDA margin.

Overall, recent results continued to demonstrate the structural advantages of Carvana’s business model which enable rapid growth in profitability. After several years of heavy investment and operational fine-tuning, Carvana has entered a more durable, cash-generative phase of growth. We continue to believe Carvana has material runway ahead.”

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Disclosure: None. This article is originally published at Insider Monkey.