LAD - Shift Technologies: Massive Growth At A Depressed Valuation

• Shift is one of the most compelling ways to play the transformational change in consumer buying and selling patterns in the used car market.
• In the United States alone, the used car industry is estimated to be worth $840B per year. However, this market is still highly fragmented and e-commerce penetration remains below 2%.
• End-to-end e-commerce platforms such as Shift, Carvana, and Vroom are revolutionizing the used car industry through the use of advanced AI/ML technology.
• In this note, I will share a detailed qualitative and quantitative analysis of Shift's business. Furthermore, I provide my fair value and expected return estimates for Shift based on very conservative assumptions.
• According to my estimates, Shift's stock is severely undervalued and long-term investors could expect to generate ~35% CAGR returns over the next decade. Hence, I rate Shift a strong buy.

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