How 3 of the market’s biggest 2022 losers ended up in the S&P 500 this year

Carvana (CVNA) has experienced one of the most remarkable stock market turnarounds in recent memory. After eight consecutive years of improving margins, the company faced a significant setback in 2022. Despite selling more than double the number of cars compared to 2019, Carvana’s annual loss skyrocketed to nearly $2.9 billion. However, the company has managed to bounce back from the brink of collapse, posting record revenue and gross profit per vehicle earlier this year.

In just three years, Carvana’s stock price plummeted by 98%, trading at just below $4 per share. However, the stock is now set to join the prestigious S&P 500 index, marking an impressive 11,000% rally that has left short sellers reeling. This milestone will see Carvana join the ranks of Robinhood (HOOD) and Coinbase (COIN), two other companies that weathered the storm of the 2022 bear market before staging their own remarkable comebacks.

Carvana CEO and chairman Ernie Garcia reflected on the company’s survival, highlighting the resilience that enabled them to post their first annual profit in 2024. Even Morgan Stanley’s Adam Jonas, who had previously issued warnings about the stock, became bullish on Carvana, praising it as the “potential ‘Amazon of auto retail’.”

In a market environment characterized by surging interest rates, soaring inflation, and a crypto bear market, all three companies – Carvana, Robinhood, and Coinbase – found themselves at the center of the storm. Despite the challenges, these companies have managed to adapt and thrive, with Robinhood and Coinbase also experiencing significant turnarounds.

Robinhood, known for its role in the 2021 meme stock frenzy, has seen its stock price surge by about 1,450% from its 2022 low of around $7. The company’s founders, Vlad Tenev and Baiju Bhatt, made significant sacrifices by forgoing their own $500 million bonus contracts to help the company cut costs and achieve profitability. This strategic move paid off, as Robinhood posted its first full year of profit in 2024, signaling a shift towards sustainable growth.

Similarly, Coinbase, the world’s largest crypto exchange, has made strides in diversifying its offerings, including tokenized assets and prediction markets. The company’s inclusion in the S&P 500 index earlier this year marked a significant milestone, underscoring the growing acceptance of cryptocurrencies in mainstream finance.

Despite facing regulatory scrutiny and market volatility, both Robinhood and Coinbase have demonstrated resilience and adaptability, positioning themselves for long-term success. As the industry continues to evolve, these companies are focused on innovation and growth, paving the way for a new era of digital finance.

In conclusion, the remarkable turnarounds of Carvana, Robinhood, and Coinbase serve as a testament to the resilience and adaptability of companies in the face of challenging market conditions. By leveraging innovation and strategic decision-making, these companies have not only survived but thrived, paving the way for a brighter future in the ever-changing landscape of the financial markets.