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

Core Insights - Carvana has experienced a dramatic turnaround, moving from significant losses to record revenue and gross profit per vehicle in 2023 after nearly collapsing in 2022 [1][4]. Company Performance - By the end of 2022, Carvana's annual loss reached nearly $2.9 billion despite selling more than double the number of cars compared to 2019 [1]. - The stock price fell 98% in 2022, trading just below $4 per share, but has since rallied 11,000%, leading to its inclusion in the S&P 500 [2]. - Carvana's CEO, Ernie Garcia, noted the company's resilience during challenging market conditions, culminating in its first annual profit in 2024 [4][5]. Market Position - Analysts predict Carvana could grow its share of the used car market from 1.5% today to 12% by 2040, with some referring to it as the potential "Amazon of auto retail" [5]. - Short sellers have faced significant losses, totaling $8.44 billion since Carvana's all-time low in 2022 [6]. Industry Context - The broader market faced challenges in 2022, with the S&P 500 declining 19%, marking one of its worst performances outside of a recession [4]. - Other companies like Robinhood and Coinbase also experienced sharp recoveries, highlighting a trend of significant market turnarounds [2][6].