Wedbush Selects Carvana (CVNA) as Top 2026 Internet Pick Amid Shifting AI and Autonomous Disruption

Carvana Co. (NYSE:CVNA) is one of the best performing S&P 500 stocks in 2025. On December 19, Wedbush analyst Scott Devitt raised the firm’s price target on Carvana to $500 from $400 and kept an Outperform rating on the shares. The firm highlighted that consumer internet stocks outperformed the broader market in 2025, posting an average return of 23% across 24 companies compared to the NASDAQ’s 19%. However, the firm anticipates a more fragmented market in 2026. Performance is expected to vary as investors focus on variables like the impact of AV disruption, AI monetization strategies, the scale of ongoing investment cycles, and the integration of agentic AI.

Earlier on December 15, Argus initiated coverage of the company with a Buy rating and $500 price target.

Additionally, on December 12, Citi raised the firm’s price target on Carvana to $550 from $445 with a Buy rating on the shares. According to the firm’s retail unit sales tracker, Carvana’s growth gained momentum in November, with year-over-year retail sales rising to 37% compared to 32% in October due to rising consumer demand. Citi also increased its EBITDA projections for the company.

Jefferies analyst John Colantuoni also raised the firm’s price target on the company to $550 from $475 with a Buy rating on the shares just a day before. The firm advised investors to remain selective with Internet stocks and cautioned that increased spending on new initiatives may hinder margin growth, while fears regarding AI-driven market disruption could prevent stock valuations from expanding.

Carvana Co. (NYSE:CVNA), together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the US.

While we acknowledge the potential of CVNA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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