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Carvana shares soar more than 50% after company releases updated profit guidance

At one point during Thursday's trading, Carvana's stock gained more than 68% to reach $26.09
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Posted at 8:55 AM, Jun 09, 2023
and last updated 2023-06-09 11:55:21-04

TEMPE, AZ — Carvana Co.’s shares skyrocketed Thursday as the Tempe-based used car retailer updated its profit outlook to reflect what it expects to be a stronger-than-anticipated second quarter.

Carvana’s (Nasdaq: CVNA) stock closed at $24.27, up 56% in heavy trading volume, on the company's announcement that it expects to achieve more than $50 million in adjusted earnings before interest, taxes, depreciation and amortization in the second quarter due to cost-cutting measures.

At one point during Thursday's trading, Carvana's stock gained more than 68% to reach $26.09, marking an eight-month high.

Carvana also forecasts a record-breaking profit per vehicle of $6,000 in the second quarter, marking a 63% improvement over same period in 2022, according to a company announcement.

Read more of this story from the Business Journal.