VRM - Why Vroom Stock Dropped to Its Lowest Price Since Its IPO Today
Shares of used-car company Vroom (NASDAQ: VRM) fell on Thursday after results for the third quarter of 2020 failed to impress investors. Considering results and guidance both fell inside of analyst expectations, it's hard to tell exactly where the rub is. But as of 1 p.m. EST, the stock was down 9% for the day and hitting its lowest point since its initial public offering earlier this year.
Vroom has three reportable segments, but the one investors care about the most is its e-commerce division. Overall revenue was down 5% year over year because sales dried up at its one used-car lot. But Q3 e-commerce revenue was up 25% from the third quarter of 2019. However, unit sales were up a much more impressive 59% in the e-commerce segment, resulting in a 120% surge in gross profit.
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Why Vroom Stock Dropped to Its Lowest Price Since Its IPO Today