Revisiting The 2021 Stock Picker Bull MarketThe charts of companies like Applovin, Carvana, and Twilio are all companies that, at one point, were high flyers during the 2020/21 bull market. However, they are also poster child's for its subsequent collapse. But then again, pay close attention to the charts that I've shared here... something is brewing.
Applovin: A Sudden Vertical Surge
Starting with Applovin (far left panel), the stock has gone vertical recently and what's most fascinating about that is the simple fact that the naysayers who were saying it was a bubble have been blown out. Not only has it reclaimed its prior all-time highs, but now it's also soaring to new heights as one of the year's best performers.
Carvana: Rising from the Ashes?
In the middle chart, Carvana’s chart is equally jaw-dropping. Once the poster child for pandemic-era excesses, Carvana’s bubble famously popped in 2022. The steep decline appeared terminal for the company’s stock price. Yet here we are, with Carvana now climbing back a significant chunk of its losses.
In my view, this rebound reflects an emerging trend: the market’s willingness to forgive past excesses.
Twilio: From Bust to “Interesting”
Finally, Twilio’s chart (far right panel) shows a similar recovery story. After its epic collapse in 2022, Twilio found itself trading in the bargain bin. Now, the stock is seeing renewed interest. While the rise isn’t as steep as Applovin’s or Carvana’s, the pattern of recovery is unmistakable and it's why I am writing this post: is something brewing? Are these companies for real? Can they print money for investors, emerge into new sectors, build new products, and expand? It seems that the builders are clearly emerging.
I write all of this to say the following – I believe there are a basket of stocks that are falling into this category and as we had into 2025, you should have your watchlist ready. I will soon be publishing my extensive watchlist on this subject. Stay tuned!
