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Carvana Soars to Record Highs as S&P 500 Addition Triggers Index-Buying Scramble

Index funds face mandatory buying before Dec. 22, with several analysts warning the shares look stretched.

Overview

  • Carvana, CRH and Comfort Systems USA will join the S&P 500 before the Dec. 22 open, replacing LKQ, Solstice Advanced Materials and Mohawk Industries, S&P Dow Jones Indices said.
  • Carvana shares jumped roughly 10%–12% to fresh records, touching about $438–$457 intraday, extending a multi-day run that has lifted its market value above Ford and General Motors.
  • Market-structure watchers estimate index trackers need to buy roughly 16 million CVNA shares, a setup that intersects with notable short interest and options hedging that could heighten volatility into the effective date.
  • Q3 2025 results showed 155,941 retail units sold, $5.65 billion in revenue, $263 million in net income and $637 million in adjusted EBITDA, underscoring a multiyear turnaround from 2022 lows.
  • Banks boosted coverage with BofA’s price target at $455 and JPMorgan at $425, yet several datasets flag rich valuation; social chatter highlights insider sales of over $30 million and persistent retail skepticism, while rate-cut expectations remain a key near-term swing factor.