On the Brink of Bankruptcy with a Market Cap of 100 Trillion Won... U.S. Used Car Platform Stocks Surge Another 5%

Carvana, the U.S. online used-car retailer (CARVANA CO: CVNA), surged 5.11% on the New York Stock Exchange on the 22nd, closing at $478.45. The jump added roughly $3.6 billion—about ₩5.5 trillion—to its market capitalization in a single day, lifting its total value to approximately $67.7 billion (around ₩99 trillion), based on an exchange rate of ₩1,466 to the dollar.

Recently, Carvana’s shares have shown technical strength and growing anticipation of improved results, pushing its composite investing score into the top 4% of all stocks. In the third quarter, the company posted a 55% year-over-year increase in revenue and a 61% rise in earnings. Carvana has set its fourth-quarter and full-year earnings release for February 18, and Barclays has maintained an Overweight rating while raising its price target to $530.

Known for its giant “car vending machine” showrooms, Carvana faced bankruptcy concerns in 2022. Since then, it has implemented cost reductions and strengthened its financial structure, fueling turnaround expectations and driving its stock up by several hundred percent—making it a prime example of a high-volatility equity.