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Citi Boosts Carvana (CVNA) Outlook as November Sales Surge Hits 37% Growth

Carvana Co. (NYSE:CVNA) is one of the best stocks to buy for the next 5 years. On December 12, Citi raised the firm’s price target on Carvana to $550 from $445, while keeping a Buy rating on the shares. The firm posted this sentiment as Carvana’s sales tracker revealed that November growth reached 37%, which was a notable increase from October’s 32%. Believing that the company is benefiting from a clear upward trend in demand, the firm also revised its EBITDA estimates higher.

A day before, on December 11, Jefferies analyst John Colantuoni raised the price target on Carvana to $550 from $475 with a Buy rating on the shares. This decision was made as Piper Sandler recommended a highly selective approach to internet stocks for the coming year. The firm cautioned that heavy incremental investments in new technologies may compress profit margins, while growing concerns over AI disintermediation could prevent stock multiples from expanding. This cautious stance suggests that while the sector remains a focus, the transition from infrastructure to application in 2026 will create significant valuation hurdles for companies unable to prove their long-term defensibility.

Furthermore, Morgan Stanley analyst Andrew Percoco assumed coverage of Carvana on December 8 with an Overweight rating and $450 price target. Following a recent change in analysts, Morgan Stanley updated its 2026 outlook for the automotive and shared mobility sector with a more defensive tone. The firm warned that the EV winter is set to endure through 2026, leading to a more cautious stance on pure-play EV manufacturers. To balance this, the firm expressed a moderately positive view on companies focusing on internal combustion engines and hybrids.

Carvana Co. (NYSE:CVNA), together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the US.

While we acknowledge the potential of CVNA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CVNA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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