Carvana set to join S&P 500, shares jump

Dec 8 (Reuters) - Shares of Carvana CVNA.O rose in premarket trading on Monday, as the online used‑car dealer secured a spot in the benchmark S&P 500 index.

The stock was last up 8.6% at $434.35 premarket, looking to extend its 10-day winning streak.

S&P Dow Jones Indices said late on Friday that Carvana would be part of the benchmark index effective December 22.

The inclusion marks a dramatic turnaround for a company that hit record lows in 2022 amid fears of a debt default and possible bankruptcy as demand for used cars slowed.

Since then, Carvana's shares have surged more than 8,000%, nearly doubling in 2025 alone, as tighter cost controls and a rebound in demand helped the company swing to profitability.

Carvana's market value now stands at about $87 billion, far above legacy automakers Ford F.N and General Motors GM.N, which are valued at $52 billion and $71 billion, respectively. The stock trades at 57.4 times forward earnings, far above the single‑digit multiples of its Detroit rivals.