Carvana (NYSE: CVNA) shares are soaring following a major catalyst that has thrust the online used-car retailer back into Wall Street’s spotlight.

At the close of the last trading session, CVNA stock was trading at $399, ending the day up 0.2%. However, in after-hours trading, Carvana shares surged nearly 10%. Year-to-date, the equity has jumped 100%.

The stock’s sharp move was driven primarily by its upcoming inclusion in the S&P 500 index, a milestone that immediately boosted investor demand and triggered a wave of momentum buying.

S&P Dow Jones Indices confirmed that Carvana will join the benchmark index ahead of the December 22 rebalancing. The announcement sparked a rapid spike in after-hours trading as index-tracking funds and ETFs prepared to accumulate shares, a dynamic that often leads to swift short-term price reactions. 

The move caps a dramatic recovery for Carvana, which endured years of volatility before accelerating its turnaround in 2025.

Impact of S&P 500

Analysts note that S&P inclusion typically improves liquidity while bolstering long-term credibility. The addition comes on top of an already impressive 2025 rally, making Carvana one of the standout performers in its sector.

Strong business performance is also supporting the rally. In this line, Carvana posted robust third-quarter results, reporting revenue of about $5.65 billion alongside improved profitability , metrics that helped justify its inclusion in the S&P 500. 

The company’s rebound in unit economics, operating efficiency, and retail demand has pushed it back to the forefront of digital auto retail.

However, some valuation models suggest the stock may be pricing in aggressive expectations, with analysts warning that its premium valuation leaves little room for disappointment. 

Others emphasize that part of the spike is driven by index-related demand rather than purely fundamental buying.

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