Vroom plunges 23% after releasing a weaker-than-expected forecast
: $2 per share reported, versus 55 cents Morgan Stanley breaks down 4 reasons why the next stock bull market is just getting underway — and lays out the best investing strategy for taking advantage The company expects that in the third quarter, it will have a net loss between 37 cents and 42 cents per share on revenue between $268 million and $290 million.
Analysts expected that the online used-car company would project a loss of 36 cents per share and revenue of $344.6 million. "In response to the drop in demand and uncertainty around vehicle pricing early in the pandemic, we chose to de-risk the business by significantly reducing our inventory during the first half of the quarter," said Paul Hennessy, Vroom CEO, inIn the second half of the quarter, the company started to rebuild its inventory "as demand increased and pricing became more stable," Hennessy said, adding, "These lower inventory levels prevented us from fulfilling all of the demand that materialized in the second half of the quarter." That demand may be driven by people buying up used cars as they move out of cities and into the suburbs amid the coronavirus pandemic, Hennessy told He also said that Vroom's less-than-rosy third quarter forecast is due to falling average sales prices, which have taken a hit amid the pandemic as Americans become more hesitant to spend money.
Please follow us on Google to support usUnited States Latest News, United States Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
TikTok launched a TV app for Amazon Fire TV - Business Insider - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Apple supplier Foxconn's profit beats view, sees smartphone demand off lowsFoxconn, the world's largest contract electronics manufacturer , posted a better-than-expected quarterly profit and forecast its smartphones business would see sustained revenue weakness but at a slightly slower pace this quarter.
Read more »
Inside Sunrun strategy to provide clean power from customer batteries - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Business Insider Subscription - Sign up TodayAs a BI subscriber, we’ll take you inside the companies you care about, industry analysis on new trends, and important interviews and info you can’t afford to miss. Subscribe now for up to 50% off your annual subscription
Read more »
Airbnb's revenue plunged 67% in second quarter: report - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Inside Santa Barbara County, Prince Harry and Meghan Markle's new home - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »