Carvana stock was nearly wiped out in 2022. It’s rallied more than 7,000% since.

Carvana investors have been on a roller coaster ride over the past couple of years, and for those who could hang on, it’s paid off big time.

The used-car dealer, famous for its car tower vending machines, was on the verge of bankruptcy in December 2022, and its stock price crashed 98% to a valuation of about $400 million.

The stock has since soared more than 7,000% to a $52 billion valuation, and its latest earnings release shows that the company is hitting new records.

In its third-quarter earnings report, Carvana reported record adjusted EBITDA of $429 million on about $3.7 billion in revenue, far surpassing Wall Street estimates.

Meanwhile, total cars sold surged 34% to 108,651 units in the quarter. Shares of Carvana surged about 22% on Thursday following the results, trading at $248.82 as the market headed into the close.

“Carvana’s exceptional results underscore our position as the fastest-growing and most profitable automotive retailer,” Carvana CEO Ernie Garcia said.

It’s a remarkable turnaround for a company that was virtually left for dead by investors two years ago when it experienced a credit crunch due to an overextended balance sheet and a weakening consumer outlook. It didn’t help that funding options dried up as the Federal Reserve aggressively hiked interest rates in 2022 and 2023.

Carvana successfully fended off creditors, including Apollo Global Management, and convinced them to take a $1.3 billion haircut on their underwater bonds as the company raced to slash costs and right-size its business.

The massive bet, led by CEO and founder Ernie Garcia, paid off, and it appears Wall Street is starting to play catch-up on the Carvana story.

More than 10 Wall Street firms raised their price targets on Thursday following the company’s solid earnings results. According to Bloomberg data, the average Carvana price target is around $200, still below the $255 per share price at which the stock traded Thursday afternoon, leaving room for more potential upgrades in the future.

JPMorgan raised its price target for the stock to $300 per share and reiterated its “Overweight” rating in a note on Thursday.

“3Q24 results should be seen as a clearing event that is likely to diminish any lingering concerns/skepticism around CVNA’s recent progress on unit economics with focus shifting to the unique benefits of the operating model and widening moat vs peers, reinforced by the recent foray into commercial – retail marketplace that unlocks a significant profit opportunity with infrastructure and resources to scale,” JPMorgan said.

Despite the strong rally over the past 22 months, Carvana stock is still 32% below its record high of $376.83 reached in August 2021.

Here’s a look at the company’s stock price since going public in 2017.