VRM - 3 Things to Consider Before Buying Beaten-Down Vroom Stock

I started watching Vroom (NASDAQ: VRM) stock last autumn , and it was off to a good start -- until the fourth-quarter 2020 earnings report (and accompanying tech stock rout) sent shares plummeting. Share prices are down over 30% from their most recent highs in February. The quarterly update had a lot of good stuff for shareholders, but this online car dealer is no slam dunk in the fast-growing migration of commerce to a digital format.

Here are three things you should know before deciding to purchase.

After the economic freeze last spring, Vroom reported another rally in autos sold on its e-commerce platform. Units sold during the period increased 74% year over year to 11,022. Even better, management said full-year 2021 e-commerce unit sales should increase by a triple-digit percentage as it laps the initial effects of COVID-19. Company forecasts suggest the first quarter of 2021 will see between 14,000 and 14,500 e-commerce units sold (an 80% increase at the midpoint of guidance).

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