VRM Stock Recent News

Shares of vehicle e-commerce platform Vroom (VRM) plunged over 50% ahead of the opening bell Tuesday after the company said it plans to discontinue its e-commerce operations and wind down its used vehicle dealership business to shore-up its liquidity and maximize stakeholder value.

Vroom, the parent company of automotive financing group United Auto Credit Corporation (UACC), faces a reckoning when US markets open on Tuesday. Its market value was effectively slashed in half in pre-market trades after the Houston-based business announced that its ecommerce platform for buying and selling used vehicles is to be shuttered.

Vroom is winding down its eCommerce operations and discontinuing its used vehicle dealership business.  The company aims to preserve liquidity and maximize stakeholder value through its remaining businesses, Vroom said in a Monday (Jan. 22) press release.

The headline numbers for Vroom (VRM) give insight into how the company performed in the quarter ended September 2023, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

NEW YORK--(BUSINESS WIRE)--Vroom, Inc. (Nasdaq: VRM), a leading e-commerce platform for buying and selling used vehicles, today announced that it will release its financial results for the third quarter ending September 30, 2023, after the market closes on Tuesday, November 7, 2023. Vroom management will discuss these results and other information regarding the Company during a conference call and audio webcast on Wednesday, November 8, 2023 at 8:30 a.m. ET. To access the conference call, pleas.

Vroom faces financial concerns and liquidity issues, with a market capitalization well below its book value. In 2023, Vroom undertook strategic changes, including workforce reduction and a shift to an in-house sales model, aiming to improve customer experience and reduce costs. The company's revenue streams are complex, with high-margin sectors in product and finance offset by negative margins in wholesale vehicle sales.

Although the revenue and EPS for Vroom (VRM) give a sense of how its business performed in the quarter ended June 2023, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Vroom (VRM) came out with a quarterly loss of $0.48 per share versus the Zacks Consensus Estimate of a loss of $0.51. This compares to loss of $0.73 per share a year ago.

Vroom (VRM) could be a great choice for investors looking to buy stocks that have gained strong momentum recently but are still trading at reasonable prices. It is one of the several stocks that made it through our 'Fast-Paced Momentum at a Bargain' screen.

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