NEW YORK, May 8, 2026, 09:12 EDT
Carvana (CVNA) will undergo its first-ever stock split on Friday, with shares kicking off split-adjusted trading on the New York Stock Exchange after shareholders signed off on a five-for-one forward split. Each outstanding Class A and Class B share will be divided into five, and the number of authorized shares will rise accordingly, according to the filing.
This shift draws attention because Carvana shares had hovered close to $400 before the adjustment—a price point that can discourage some smaller retail investors. The split brings down the per-share price and bumps up the share count, but leaves both Carvana’s overall market cap and individual stakes untouched. Benzinga characterized Friday’s move as simply mechanical, with the stock sliding from just under $400 at Thursday’s finish to about $81 after the split.
This isn’t only about charts. Carvana stands out among consumer names, with used-car demand holding up as sticker prices on new vehicles stay steep. Reuters noted last week that new cars are averaging close to $50,000 in the U.S., which has nudged more shoppers toward preowned options.
Carvana turned in a record-breaking first quarter on April 29, moving 187,393 retail units and pulling in $6.432 billion in revenue. Net income hit $405 million. Adjusted EBITDA climbed to $672 million. CEO Ernie Garcia called it the company’s “sixth consecutive quarter of 40% or greater year-over-year retail unit growth.” Carvana Investors
When Carvana rolled out the plan, Garcia connected the stock split to employee ownership, describing it as a way for every team member to “participate in the value we create together over time.” Investors on the books would see four extra shares land for every one they held. Carvana Investors
Sharon Zackfia at William Blair kept her Buy rating on Carvana as of May 5, TipRanks reported, pointing to the company’s growth trajectory and brand strengths. The analyst noted the five-for-one stock split leaves her earnings view unchanged. She did highlight a few risks, including fast-falling vehicle inventory values, tougher credit, and the ups and downs tied to big-ticket consumer spending.
Needham’s Chris Pierce is sticking with his Buy call after the latest results, bumping his target up to $600 from $500. He still sees CVNA as the “best large cap growth story” under his watch, highlighting ongoing potential for unit growth and gains from fixed-cost leverage. Other analysts, too, have latched onto the operating leverage angle. Benzinga
The numbers are all over the place. On Thursday, CarMax tacked on 1.22% to close at $39.91, according to MarketWatch. Carvana ran up 2.73%, ending the session at $400.02; ACV Auctions surged 24.52% and OPENLANE added 4.81%. Carvana’s split comes as online and wholesale auto marketplaces attract fresh interest—yet the reasons for the moves aren’t lining up across the group.
Still, the split has resurfaced familiar worries. Carvana’s stock, Motley Fool pointed out, soared from $3.72 at the close on Dec. 27, 2022 to about $379 this week — that’s a staggering jump of more than 10,000%. Yet the firm flagged ongoing risks tied to valuation and loan quality, particularly Carvana’s exposure to subprime and non-prime borrowers.
Now it’s about execution—you can set aside the share count for the moment. In its shareholder letter, Carvana projected both retail units sold and adjusted EBITDA would notch sequential gains in the second quarter, provided the operating environment holds steady. Company records on both fronts, the firm said.
