Carvana (CVNA) witnessed a surge in its stock prices following the announcement of its first-ever annual profit, coupled with optimistic projections for improved earnings in the upcoming quarter. The online used-car retailer reported a net income of $150 million for 2023, a significant turnaround from the approximately $2.89 billion loss recorded in the previous year. Additionally, the company anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to exceed $100 million, signaling positive growth prospects. 

Notably, Carvana made substantial strides in cost reduction, slashing $1.1 billion in annualized selling, general, and administrative (SG&A) expenses in 2023. Furthermore, the company took proactive steps to manage its debt by renegotiating loan agreements with the majority of its term bondholders, contributing to a healthier financial position. Despite initial challenges stemming from post-pandemic uncertainties and inflation concerns among consumers, Carvana demonstrated resilience, narrowing its per-share loss to $1 for the fourth quarter, compared to $7.61 per share in the previous year.