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Vroom - Hello Junk Status, Only One Way Out

Mar. 01, 2022 3:54 PM ETVroom, Inc. (VRM)CVNA, KMX96 Comments


  • Multiple quarters of increasing losses have investors rightfully worried.
  • Light Asset Strategy was misguided.
  • Given market resistance to fund high growth companies with increasing losses, Vroom needs to seek a bigger financial partner now.

Vroom66/iStock via Getty Images

Vroom (NASDAQ:NASDAQ:VRM) announced earnings yesterday that might have completed an incredible implosion. Over a period of several months dating back to August, Vroom has converted from high growth darling to an orphan struggling to find its way. Vroom's management has completely missed

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Sabra Capital is a multi-strategy hedge fund that focuses on event-driven, value and special situations investments. The primary investment objective is to achieve high risk-adjusted returns by taking advantage of in-depth proprietary research while limiting volatility and downside risk through opportunistic portfolio construction and strong risk management. Voted best event-driven multi-strategy manager for 2013 by Hedgeweek.

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