S&P 500: 14 struggling companies are about to lose an obscene amount of money

S&P 500 investors hate companies that are losing money right now. So it’s wise to know which companies are about to lose obscene amounts of money so you don’t end up holding the bag.


And some huge losses are ahead. Analysts believe 14 companies in the S&P 1500 and S&P Completion markets, including UberTechnologies (UBER), Rivian Automotive (RIVN) and Carnival (CCL), will post massive adjusted losses of $1 billion or more this year, according to an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. And that’s not to mention the parade of losers like Coinbase global (PIECE OF MONEY), Interactive Platoon (PTON) and Robin Hood (HOOD).

Investors are also fed up with losses, especially of this size. Shares of the 14 companies expected to lose the most money this year are down an average of 60% this year. That’s about three times worse than the 23% drop in the S&P 500 this year.

“Wall Street realizes that we won’t see any significant sign that inflation is falling fast enough over the next two months and that should make it difficult to buy the dip for now,” Edward Moya said at Oanda.

Losses matter to the S&P 500 and other investors

Future growth is over. Earnings, dividends and cash flow are all there. The cash on hand is now worth far more than the profits for years to come due to soaring interest rates.

There is no doubt that investors avoid companies losing money. Unfortunately, there are many such potholes that investors need to avoid. Nearly 1,200 companies in the S&P 500, S&P 400, S&P 600 and S&P Completion indices are expected to lose money this year. That’s a staggering third of the universe with valid earnings forecasts for 2022. And shares of these losing companies have fallen 46% on average this year, far worse than the index.

And it’s not just struggling small businesses that are bleeding red ink. Shares of the nine large-cap-focused S&P 500 stocks expected to post adjusted losses in 2022 are down an average of 33% this year. This is much worse than the fall of the S&P 500 at that time.

It is wise to pay attention to investors’ worries about losses.

Uber: an Uber-sized money loser

The only uber thing about Uber in the eyes of investors now is the size of its expected loss in 2022.

Analysts believe the ride-sharing-turned-food-delivery service will lose $7.2 billion this year on an adjusted basis. This is the biggest expected loss of any of the stocks in the major indexes. Almost equally shocking is that this is just the latest in a series of giant losses for the company. It’s the biggest adjusted loss in its history, which is saying something. Uber lost $5 billion in 2020 and $3.1 billion in 2019.

Investors simply don’t want anything to do with those kinds of losses. Shares of the company have fallen more than 35% this year.

Electric car company, cruise ships cause huge losses

Remember when investors thought Rivian Automotive had a chance to get going You’re here (TSLA) in the S&P 500? Yeah, no one else does either.

Rivian shares lost more than two-thirds of their value in a fatal crash this year. Why? Analysts believe Rivian will lose nearly $6.7 billion this year. That’s pretty impressive — in a bad way — considering it’s more than double the $3 billion already lost in 2021. That’s in stark contrast to Tesla, which analysts say will gain 14 billion adjusted this year alone.

Cruise ship operators are also accidents waiting to happen. Take one of the biggest: Carnival, a member of the S&P 500. The company is expected to lose $4.1 billion this year. Yes, that’s an improvement from 2021, when the company lost nearly $8 billion. But that’s not the direction S&P 500 investors want to go now. Carnival shares have lost more than half their value this year.

And investors also threw many of the new company’s darlings overboard. Most lose money, and lots of it. It just doesn’t work with investors now. Coinbase Global is down 75% as it appears to be losing $1.8 billion this year. Peloton Interactive, facing a $1.2 billion loss this year, is down 77%. And Robinhood is down 47% as investors aren’t willing to wait as it loses $1.2 billion this year.

Stop wasting money. And the sooner you get away from those giant losses, the better it is for your wallet.

The biggest losses to come in 2022

Companies in the S&P 1500 and Completion Index expected to lose $1 billion or more this year

Company Teleprinter Expected adjusted net loss (in 2022, in billions of dollars) Stock YTD % ch. Sector
UberTechnologies (UBER) $7.2 -35.8% Industrial
Rivian Automotive (RIVN) 6.2 -67.3 Consumer Discretionary
Carnival (CCL) 4.2 -55.8 Consumer Discretionary
Ginkgo Bioworks Holdings (DNA) 1.9 -66.2 Materials
Norwegian Cruise Line Holdings (NCLH) 1.8 -35.6 Consumer Discretionary
Royal Caribbean Cruises (RCL) 1.8 -42.8 Consumer Discretionary
Coinbase global (PIECE OF MONEY) 1.8 -75.5 Finance
We work (WE) 1.7 -64.1 Immovable
carvana (CVNA) 1.5 -89.5 Consumer Discretionary
Lucid Group (LCID) 1.5 -63.1 Consumer Discretionary
Basic scientist (CORZ) 1.3 -87.4 Computer science
Interactive Platoon (PTON) 1.2 -77.0 Consumer Discretionary
Boeing (BA) 1.2 -36.7 Industrial
Robinhood Markets (HOOD) 1.2 -47.8 Finance
Sources: IBD, S&P Global Market Intelligence

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