Wedbush Names Carvana Its Top 2026 Internet Pick Amid AI and Autonomous Shifts

Investment firm Wedbush has identified Carvana (CVNA) as its preferred internet-stock pick for 2026, arguing that the online used-car retailer is positioned to capture meaningful upside as industry dynamics evolve. In a note to clients, Wedbush highlights a combination of attractive valuation, structural cost reductions and operational streamline efforts that could support a multi-year recovery for the company.

Wedbush’s thesis rests on two broad themes. First, Carvana’s asset-light e-commerce model and established logistics network give it a differentiated footprint in the growing digital auto resale market. After a period of volatility that pressured margins and investor confidence, the broker sees room for margin expansion as inventory normalizes and fixed costs are pared. Second, longer-term technology trends — notably advances in artificial intelligence for pricing and vehicle sourcing, plus the gradual arrival of autonomous driving technologies — are reshaping supply and demand patterns in used-car markets. Wedbush contends those shifts could create both pricing efficiencies and new supply channels that benefit a scaled online platform.

The research note emphasizes execution risk but frames the stock as an asymmetric opportunity: downside appears constrained by improved operational discipline, while upside could accelerate if Carvana converts more consumers to online purchases and capitalizes on AI-driven pricing and logistics improvements. Wedbush also points to potential industry consolidation: as legacy and smaller dealers adapt to digital competition, leading online retailers with scale may gain market share.

Analysts and investors should, however, weigh several caveats. Macroeconomic headwinds, interest-rate sensitivity in car financing, residual inventory risk and execution missteps remain material threats. The pace and impact of autonomous-vehicle adoption are uncertain and could create transitional dislocations before any benefits accrue to used-car platforms.

For investors seeking exposure to the intersection of e-commerce, mobility and emerging tech, Wedbush’s pick signals confidence that Carvana can translate structural advantages into sustainable returns by 2026. The call highlights how AI and autonomy are not just headline disruptors but also practical forces that could reshape pricing, sourcing and distribution in the used-vehicle market.