VRM - Vroom defended for long-term potential amid share price wipeout

JPMorgan pulls back a bit on its positive view on Vroom ([[VRM]] -28.7%) following the auto retailer's Q4 earnings report.Analyst Rajat Gupta: "Even though volumes have not been disappointing, and there were some underlying positives along the way, the direction of profits is significantly worse than anticipated due to longer and harder impacts of previous bottlenecks related to support functions, and we see a longer road to re-establishment of execution credibility after the company has missed forward profit expectations for the first three quarters as a growth-oriented public company."JP continue to believe that the long-term opportunity is intact and reminds that VRM' earnings misses, execution bottlenecks, and unit economics aren't too different from Carvana's when it was of a similar size.VRM is considered a "show me" story at this stage with still significant upside as clarity on execution increases. That is enough to keep the firm at Overweight on Vroom, but

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Vroom defended for long-term potential amid share price wipeout