Why Carvana Co. (CVNA) Surged On Tuesday?

Insider Monkey
09 Apr

We recently published a list of 10 Stocks Lead Rally Amid Market Bloodbath. In this article, we are going to take a look at where Carvana Co. (NYSE:CVNA) stands against other stocks that lead rally amid market bloodbath.

The stock market took a battering anew on Tuesday, with all major indices registering steep losses as investors continued to digest President Donald Trump’s next tariff deadline that would slap China with a cumulative 104-percent tariff.

The tech-heavy Nasdaq registered the heaviest fall, down by 2.15 percent, followed by the S&P 500’s 1.57 percent decline, and the Dow Jones’ 0.84-percent drop.

Meanwhile, 10 companies—four of which were in the medical sector—bucked an overall market decline, booking modest gains during the session.

In this article, we listed the 10 well-performing names of Tuesday and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

A customer buying a used car with the help of a finance specialist.

Carvana Co. (NYSE:CVNA)

Used car selling platform Carvana Co. grew its share prices by 5.03 percent on Tuesday to end at $176.32 apiece after earning a positive rating from a brokerage firm.

On Monday, JMP Securities reaffirmed its Outperform rating for CVNA and a price target of $340, given the company’s ongoing expansion efforts, which include the integration of ADESA sites as a key driver for its growth.

CVNA has been actively integrating ADESA’s physical auction sites into its operations. At present, it was able to successfully integrate six out of 56 ADESA locations.

In other news, CVNA said it was developing its eighth auction and reconditioning “mega site” in Phoenix, Arizona, as it aims to bolster its operations in the Southwest.

“The Phoenix area is home to our headquarters and a significant anchor for Carvana and ADESA operations, so we couldn’t be more excited to expand our local capabilities and team here,” said CVNA Senior Vice President for Inventory Brian Boyd. ”Bringing Carvana Inspection and Reconditioning Center capabilities to ADESA Phoenix will drive additional speed and selection for our local retail customers and an even more robust offering for our local wholesale customers while also creating new entry-level and skilled jobs in the Chandler community.”

Overall, CVNA ranks 7th on our list of stocks that lead rally amid market bloodbath. While we acknowledge the potential of CVNA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CVNA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

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