#4 - Vroom, Inc. (NASDAQ:VRM)
I don’t want to continue to bang on the digital automobile sellers, but Vroom, Inc. (NASDAQ:VRM) presents many of the same issues that I mentioned with Carvana.
Vroom went public in 2020. That timing looked to be smart as the pandemic stirred demand for a contactless way for individuals to buy and sell vehicles. And VRM stock soared to over $65 a share shortly after going public.
However, almost immediately the company’s fortunes started to turn. In 2022, the stock is down over 90% and is trading for just over $1 per share. Vroom lagged behind competitors such as Carvana in the good times, and it has to find a way to stand out in a difficult market.
One opportunity may come from its acquisition of automotive lender United Auto Credit Corporation (UACC). And the company plans to expand into the area of non-prime financing in 2023. That may be necessary for some consumers, but it’s also adds an element of risk to what is already a risky business model.
About Vroom
Vroom, Inc operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail.
Read More - Current Price
- $5.49
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
