Key Points
- Carvana has completed a massive turnaround, with its stock rallying 11,000% since its 2022 low.
- The company is now being added to the prestigious S&P 500 index.
- Robinhood and Coinbase, which also suffered in the 2022 crash, have made similar comebacks and joined the S&P 500.
- The companies survived through a combination of resilience and tough cost-cutting measures.
Few comebacks are as stunning as Carvana’s. Just a few years ago, the online car seller’s stock had crashed 98%, and the company seemed on the verge of collapse. Now, after an incredible 11,000% rally that has crushed short sellers, Carvana is about to join the elite S&P 500 index.
Carvana isn’t the only one. It’s joining fellow turnaround stories Robinhood and Coinbase in the prestigious index. All three companies were at the center of the 2022 market storm, when soaring inflation and rising interest rates hammered high-growth stocks and sent them into a nosedive.
Their survival was a battle. As Carvana’s CEO Ernie Garcia put it, the pressure was immense, but “we didn’t disintegrate.” The company fought its way back from massive losses to post its first-ever annual profit in 2024.
Robinhood, the face of the 2021 meme stock craze, also made a dramatic comeback by aggressively cutting costs, including its founders forgoing substantial bonuses to help the company turn a profit.
Coinbase, the world’s largest crypto exchange, also clawed its way back from a deep slump to join the S&P 500 earlier this year, a move its CEO declared meant that “crypto’s here to stay.”
For all three companies, their inclusion in the S&P 500 marks a remarkable return from the brink and a new chapter as members of Wall Street’s top tier.
