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A Quick Take On Vroom
Vroom (VRM) went public in June 2020, raising $468 million in gross proceeds from the sale of its stock in an IPO priced at $22.00 per share.
The firm operates
Vroom Ramps Growth, But Operating Losses Remain High
Summary
- Vroom went public in June 2020, raising $468 million in an IPO.
- Vroom operates online marketplaces to enable consumers and dealers to acquire used vehicles online.
- VRM has grown revenue, but operating losses are high and increasing.
- At around $10.90 per share, my outlook on VRM is Neutral until it can increase reconditioning throughput and meaningfully reduce operating costs.
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Donovan Jones is a research specialist with 15 years of experience identifying opportunities for IPOs and public software companies.
He also leads the investing group IPO Edge, which offers actionable information on growth stocks through first-look IPO filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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