Shares of Carvana (NYSE:CVNA), an online car buying and financing platform, jumped 11% Friday morning after the market digested a solid fourth-quarter result and a strong upgrade from Morgan Stanley analyst Adam Jonas.
Carvana has been no stranger to impressive growth figures in recent years, and the fourth quarter — amid a pandemic that accelerated Carvana’s buy-online approach with consumers — was no different. Retail units sold jumped 43%, compared to the prior year, which helped drive revenue up 65% to $1.83 billion. Total gross profit jumped 71% thanks to a continued focus on improving gross profit per unit (GPU). In fact, 2020 marked the seventh consecutive year of $400 GPU improvement. For context, total GPU during the fourth quarter reached $3,379. Carvana’s growth and network expansion hasn’t come cheap, and the company’s net loss increased from $126 million in the prior year