Shares of Carvana rose in premarket trading on Monday, as the online used‑car dealer secured a spot in the benchmark S&P 500 index. The stock was last up 8.6% at $434.35 premarket, looking to extend its 10-day winning streak.
S&P Dow Jones Indices said, opens new tab late on Friday that Carvana would be part of the benchmark index effective December 22. The inclusion marks a dramatic turnaround for a company that hit record lows in 2022 amid fears of a debt default and possible bankruptcy as demand for used cars slowed.
Since then, Carvana's shares have surged more than 8,000%, nearly doubling in 2025 alone, as tighter cost controls and a rebound in demand helped the company swing to profitability.
Carvana's market value now stands at about $87 billion, far above legacy automakers Ford (F.N), opens new tab and General Motors (GM.N), opens new tab, which are valued at $52 billion and $71 billion, respectively. The stock trades at 57.4 times forward earnings, far above the single‑digit multiples of its Detroit rivals.
