Carvana stock (CVNA) experienced a significant surge of up to 40% on Friday following the used car platform's announcement of its first-ever annual profit and issuing better-than-expected guidance. The company's net income for 2023 reached $150 million, aided by debt reduction gains. Carvana's leadership expressed satisfaction during the earnings call, with CEO and chairman Ernie Garcia highlighting the company's resilience during challenging times.

Shares of Carvana, which once faced bankruptcy speculation not long ago, hit a low of $3.55 in December 2022. However, a strong focus on achieving profitability and debt restructuring efforts have paid off significantly. The stock price has rebounded, reaching around $70 each on Friday.

Short sellers have taken notice of Carvana's recent success, with short interest at just above 32% of the float. Analysts have varied opinions on the company's future prospects, with Raymond James and William Blair upgrading the stock, while Jefferies analyst John Colantuoni maintained an Underperform rating, expressing caution regarding long-term visibility.

Carvana's turnaround has caught the attention of the market, with a mix of ratings from analysts, including two Buy, 16 Hold, and five Sell recommendations. The company's performance in the current quarter is also showing promising signs, with the expectation of retail units slightly improving on a year-over-year basis and adjusted core profits forecasted to be significantly above $100 million.

The recent success of Carvana has positioned the company well in the market, showcasing its ability to overcome challenges and deliver positive results.