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MarketScreener Homepage  >  Equities  >  Nasdaq  >  Vroom, Inc.    VRM

VROOM, INC.

(VRM)
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Delayed Quote. Delayed Nasdaq - 09/17 04:00:00 pm
48.5 USD   -3.75%
09/10VROOM : Announces Pricing of Follow-On Offering
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09/08VROOM : Announces Launch of Follow-On Offering
BU
09/08VROOM, INC. : Regulation FD Disclosure (form 8-K)
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SummaryAll NewsPress ReleasesOfficial PublicationsSector news

Vroom seeing more used-car demand 'than we can currently fulfill': CEO

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08/13/2020 | 10:42am EDT

Online vehicle seller Vroom Inc is seeing more demand for used cars "than we can currently fulfill" due to the coronavirus pandemic, with a 20% increase in demand in U.S. cities that may indicate people are buying cars as they migrate to the suburbs, the company's top executive said on Thursday.

"Even with an uncertain stimulus package, even with current unemployment levels, the demand is really strong," Vroom Chief Executive Paul Hennessy told Reuters. "As the V-shaped recovery hit us in May, we've been doing everything in our power to add cars because customers want them."

Hennessy spoke to Reuters the day after Vroom posted second-quarter results.

Investors were disappointed in Vroom's third-quarter revenue forecast, sending its stock down more than 15%.

Hennessy said Vroom's forecast reflects the fact its average selling price has "come down a lot as a result of the pandemic."

Americans typically become more frugal and favor used cars in uncertain times.

"It is a lower revenue, but we're expecting to make more dollars per unit than we thought," Hennessy said. "So the numbers that really matter - the profit that we make from the car - are intact."

Online sales still only account for around 1% of the roughly $840 billion Americans spend annually on around 40 million used cars. But after numerous U.S. states went into COVID-19 lockdowns in March, the advantage of socially-distant online sales has come squarely into focus.

Hennessy said sales in pandemic-hit states like California, Texas and Florida remain "very strong" and Vroom has seen a 20% increase in demand in U.S. cities.

"That's either people who want to get away for a week and need to exit the city," he said, "or there's a migration from the cities to suburban areas and we think customers are securing cars because they've got a new life."

By Nick Carey

Stocks mentioned in the article
ChangeLast1st jan.
LVMH MOËT HENNESSY - LOUIS VUITTON SE -0.17% 419.55 Real-time Quote.1.40%
VROOM, INC. -3.75% 48.5 Delayed Quote.0.00%
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All news about VROOM, INC.
09/10VROOM : Announces Pricing of Follow-On Offering
BU
09/08VROOM : Announces Launch of Follow-On Offering
BU
09/08VROOM, INC. : Regulation FD Disclosure (form 8-K)
AQ
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08/13VROOM : seeing more used-car demand 'than we can currently fulfill' -CEO
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08/13VROOM SEEING MORE USED-CAR DEMAND 'T : Ceo
RE
08/13VROOM : Management's Discussion and Analysis of Financial Condition and Results ..
AQ
08/12Vroom shares tumble as COVID-19 hits first post-IPO results
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08/12VROOM : Reports Second Quarter 2020 Results
AQ
More news
Financials (USD)
Sales 2020 1 331 M - -
Net income 2020 -195 M - -
Net cash 2020 861 M - -
P/E ratio 2020 -18,1x
Yield 2020 -
Capitalization 6 312 M 6 312 M -
EV / Sales 2020 4,10x
EV / Sales 2021 2,18x
Nbr of Employees 800
Free-Float 83,4%
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Technical analysis trends VROOM, INC.
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 10
Average target price 69,25 $
Last Close Price 48,50 $
Spread / Highest target 69,1%
Spread / Average Target 42,8%
Spread / Lowest Target 7,22%
EPS Revisions
Managers
NameTitle
Paul J. Hennessy Chief Executive Officer & Director
Robert J. Mylod Chairman
David K. Jones Chief Financial Officer
Michael J. Farello Director
Scott Arnold Dahnke Director
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