Carvana, Robinhood, Coinbase: How 3 of the market's biggest 2022 losers ended up in the S&P 500 this year

Few banal marketplace turnarounds are arsenic melodramatic arsenic the 1 experienced by Carvana (CVNA).

By the extremity of 2022, Carvana had reversed 8 consecutive years of improving margins.

The institution sold much than treble the fig of cars successful 2022 than it had successful 2019, but its yearly nonaccomplishment ballooned to astir $2.9 billion. Now, the institution has swung from the brink of illness and managed to station grounds gross and gross nett per conveyance earlier this year.

Three years ago, the banal traded conscionable beneath $4 per share; successful 2022, Carvana banal plunged 98%. Later this month, the banal volition articulation the S&P 500 (^GSPC), capping disconnected an 11,000% rally that crushed abbreviated sellers.

Its summation to the S&P 500 volition spot the institution articulation the ranks of Robinhood (HOOD) and Coinbase (COIN), 2 different companies whose shares were hammered during the depths of the 2022 carnivore marketplace earlier staging their ain crisp turnarounds.

Read more: What's up for stocks and golden successful 2026? What experts are watching.

In 2022, surging involvement rates, soaring inflation, and a crypto carnivore marketplace sent the S&P 500 19% lower, its worst show since the fiscal situation and 1 of its worst years connected grounds extracurricular of a recession.

All 3 companies — Carvana, Robinhood, and Coinbase — were astatine the halfway of that storm.

Carvana CEO and president Ernie Garcia summed up the company’s endurance aft posting its archetypal yearly nett successful 2024.

“It's precise hard for a radical to spell done a play similar the past 2 years and not disintegrate nether the pressure,” Garcia said. “We didn't disintegrate.”

Even Morgan Stanley’s Adam Jonas, who erstwhile warned the banal could plummet to $0.10, became Overweight connected the banal successful May, calling the level the “potential ‘Amazon of car retail.’”

In October, the expert wrote helium expects Carvana to turn to a 12% stock of the utilized car marketplace by 2040, up from 1.5% today.

“CVNA abbreviated sellers person had a scarier thrust than the Conry Island Cyclone,” Ihor Dusaniwsky, managing manager of S3 Partners, told Yahoo Finance. “Shorts are down $8.44 cardinal successful mark-to-market losses since its all-time debased successful 2022."

Trading level Robinhood Markets (HOOD), the look of the 2021 meme banal frenzy, has besides staged a comeback and is connected gait to beryllium the fourth-best performer successful the S&P 500 this twelvemonth aft joining the scale successful September.

Its banal is up astir 1,450% from a 2022 debased of astir $7, a play marked by acquisition rumors and assertive cost-cutting layoffs. Founders Vlad Tenev and Baiju Bhatt agreed to forgo their ain $500 cardinal bonus contracts to assistance the institution prevention wealth and go profitable much quickly.