Carvana guides full-year 2026 Adjusted EBITDA to $2.7-$3.0 billion
Carvana says it expects sequential growth in retail units sold in the third quarter and guides full-year 2026 Adjusted EBITDA to $2.7-$3.0 billion, up from $2.24 billion in the prior year.
Market Overview Stocks finished lower last week despite bond market interventions from Treasury Secretary Scott Bessent.
The Nasdaq led the rout lower, finishing down 2.05% on the week.
The S&P 500 pulled back 1.43%, while the Dow Jones Industrial Average fared the best by only dropping 0.85%.
But don’t let the down market fool you — tremendous moves played out in crypto, precious metals, and even select biotech names.
While we’ve almost passed the "all clear" level in crypto, Crude oil remains stubbornly high and creating all sorts of problems on the liquidity front.
Stocks I Like Iren Limited (IREN) — 85% Return Potential What’s Happening IREN Limited (IREN) is a leading vertically integrated data center operator specializing in renewable energy-powered high-performance computing infrastructure for AI cloud services and Bitcoin mining, offering investors exposure to the rapidly growing AI data center and sustainable computing sector with a focus on large-scale power capacity, liquid-cooled GPU deployments, and hyperscaler partnerships.
IREN’s previous quarter showed revenue of $144.79 million but a loss of $247.83 million.
Valuation in IREN is high.
P/E is at 58.34, Price-to-Sales is at 17.45, and EV to EBITDA is at 31.42.
From a technical standpoint, IREN broke out from a rounding bottom recently.
Let’s see if former-resistance holds as support.
Why It’s Happening IREN is rapidly transforming from a Bitcoin miner into a leading AI cloud infrastructure provider, securing multi-year contracts with major AI developers and hyperscalers.
Recent deals totaling $2.8 billion, combined with an existing $9.7 billion Microsoft agreement, have lifted its 2026 annualized run-rate revenue target above $4 billion, with roughly 85% already under contract.
Execution milestones are de-risking the growth story.
The company has delivered and received acceptance for Horizon 1, the first 50 MW liquid-cooled AI cloud deployment under the Microsoft contract at its Childress, Texas campus, while also earning NVIDIA Exemplar Cloud status on the GB300 NVL72 platform—validating its technical capabilities.
Capacity expansion is accelerating at scale.
IREN is targeting 480 MW of gross AI cloud capacity by the end of 2026 and 1.2 GW in 2027, supported by a large secured power portfolio and vertically integrated operations spanning data center design, construction, and GPU deployment.
The shift to AI workloads is unlocking higher-value, recurring revenue.
AI cloud services are growing rapidly as the company reallocates capacity from Bitcoin mining, with customer prepayments and financing covering a substantial portion of GPU capital expenditures and providing strong visibility into future cash flows.
Strategic acquisitions and partnerships strengthen the platform.
The recent completion of the Mirantis acquisition adds cloud software and management capabilities, enhancing IREN’s ability to offer managed AI services and deepen relationships with enterprise and developer customers in a competitive neocloud landscape.
Analyst Ratings: HC Wainwright: Buy Canaccord Genuity: Buy Macquarie: Outperform My Action Plan (85% Return Potential) I am bullish on IREN above $35.00-$36.00.
My upside target is $78.00-$80.00.
Carvana (CVNA) — 40% Return Potential What’s Happening Carvana Co. (CVNA) is a leading e-commerce platform for buying and selling used cars, offering a seamless online experience with vehicle acquisition, inspection, financing, and home delivery, transforming the traditional auto retail model, offering investors exposure to the rapidly growing online used vehicle and automotive e-commerce sector with a focus on convenience, transparent pricing, and scalable logistics.
The previous quarter had revenue of $7.38 billion and earnings of $310 million.
Valuation is elevated in CVNA.
P/E is at 37.09, Price-to-Sales is at 3.17, and EV to EBITDA is at 560.24.
From a technical point of view, CVNA is trading nicely within a broadening wedge formation.
If it breaks above the upper trendline of the pattern, look out above.
Why It’s Happening Carvana continues to capture significant market share in the used-vehicle retail space through its seamless online platform.
In the most recent quarter, retail units sold reached a company record of 197,325, representing industry-leading 38% year-over-year growth and nearly doubling volume from just two years prior.
Record financial performance underscores the scalability of the model.
Revenue hit an all-time high of $7.376 billion (up 52% year-over-year), while net income reached $513 million and Adjusted EBITDA climbed to $769 million, delivering industry-leading margins of 7.0% and 10.4%, respectively—well above traditional automotive retailers.
Operational leverage is driving efficiency gains at scale.
SG&A expense per retail unit continues to improve as the company expands its logistics network, inventory selection, and reconditioning capabilities, supporting profitable growth even as unit volumes accelerate.
Strengthened balance sheet provides flexibility for continued expansion.