Vroom Just Added to its Tech Advantage
Six months after its IPO, Vroom (NASDAQ: VRM) has mostly been a disappointment to investors.
Shares of the online used car dealer surged on IPO day, but the stock has faded since then, down about 20% from its closing price on opening day. The stock sold off following its first two earnings reports as a public company, and Wall Street was also turned off by a secondary offering of nearly 11 million shares in September.
However, Vroom is still growing fast in a huge market. The total value of all used car sales in the U.S. was $841 billion in 2019, making it the largest retail category in the country, and Vroom estimates that the online used car market could be as big as $400 billion in a decade. The success of Carvana, the largest player in used vehicle e-commerce, shows the sector is ripe for growth.
Source Fool.com
