- 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.
For further details see:
Shift Technologies: Massive Growth At A Depressed Valuation