Does Carvana (CVNA) Have a Long Runway for Growth?

Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered -0.37%, and the Institutional Class, APHMX, delivered -0.35% in the fourth quarter compared to -3.70% for the Russell Midcap® Growth Index. Continued strength in information technology (IT) and health care contributed to the performance during the quarter. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Artisan Mid Cap Fund highlighted stocks like Carvana Co. (NYSE:CVNA). Carvana Co. (NYSE:CVNA) is a US-based leading used car retailer that operates an e-commerce platform. On February 20, 2026, Carvana Co. (NYSE:CVNA) stock closed at $336.62 per share. One-month return of Carvana Co. (NYSE:CVNA) was -28.94%, and its shares gained 56.10% over the past 52 weeks. Carvana Co. (NYSE:CVNA) has a market capitalization of $72.98 billion.

Artisan Mid Cap Fund stated the following regarding Carvana Co. (NYSE:CVNA) in its fourth quarter 2025 investor letter:

"During the quarter, we initiated new positions in L3Harris, Astera Labs and Carvana Co. (NYSE:CVNA). Carvana is one of the largest used car retailers in the US and operates a national e-commerce platform that provides broader selection, lower costs and a more convenient customer experience than traditional dealerships. We view the company as a differentiated, vertically integrated operator with strong advantages in sourcing, logistics, fulfillment and financing that create meaningful barriers to entry. With a small share of a large market, we believe Carvana has a long runway for growth as it scales nationally and captures efficiencies from its acquisition of ADESA’s US physical auction business, which adds a national network of wholesale vehicle auction facilities and supports improved unit economics."

Carvana Co. (NYSE:CVNA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 99 hedge fund portfolios held Carvana Co. (NYSE:CVNA) at the end of the fourth quarter, compared to 109 in the previous quarter. In Q4 2025, Carvana Co. (NYSE:CVNA) reported revenue of $5.603 billion, marking an increase of 58% from Q4 2024. While we acknowledge the potential of Carvana Co. (NYSE: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.

In another article, we covered Carvana Co. (NYSE:CVNA) and shared a list of best consumer discretionary stocks to buy. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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