Why Carvana Inventory Motored is 9% better this week

The year 2025 didn’t necessarily get off to a good start for the sprawling auto retailer Caravan‘s (NYSE: CVNA) stock and then in most modern days it needs to be restored quite nicely. A group of analysts that follow the company did not hesitate to defend it after the interim seller issued an extremely exaggerated disclosure, with two even upgrading their proposals.

These factors weighed heavily on investor sentiment, and Carvana shares ended the week up 9%, according to records compiled by S&P World Market Intelligence.

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In short – seller attacks

This short seller disclosure comes from Hindenburg Be taught, who is known for his scathing views on corporations he deems large or severe critics. Hindenburg’s feelings about Carvana were evident in the exposé’s inflammatory title – “Carvana: A Father-Son Accounting Scam for the Ages” (referring to late CEO Ernie Garcia III and his father, Ernesto Garcia II).

Hindenburg stuck to rather heavy accusations against Carvana and its administration. The short seller alleged that only a few quarters of the company’s sinister profits were made up of selling customers’ auto loans to third parties, among other violations.

That didn’t sit well with many analysts who followed the stock, so they wasted little time defending the company. Needham’s Chris Pierce and JPMorgan Scott expert Rajat Gupta have printed updates reiterating their equivalents of winning tricks regarding the stock.

Relieving the peer of string constraints

Going a step further, both RBC Capital and Citigroup upgraded their proposals to their versions of aquire after the defeat of Carvan stock. According to reports, Ronald Josey of Citigroup believes that the company is effective in increasing its inventory to meet the burning demands of the market.

While the stock may well be unfairly penalized by Hindenburg Be educated — which you should keep in mind, he’s creating if his claims do anything to press the part he writes — Carvana is working into a market that’s currently traumatized. Traders might do well to take care calmly, especially since the stock here is entirely volatile.

Can you handle investing $1000 in Carvana now?

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Citigroup is a sales partner of Motley Fool Money. JPMorgan Scoot is a sales partner of Motley Fool Money. Eric Volkman has no region in any of the stocks mentioned. The Motley Fool has positions and recommends JPMorgan Scoot. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.