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Investing.com — Like Carvana Co (NYSE:CVNA), online used car seller Vroom is struggling to keep up with demand. But while the news sent Caravana soaring 22%, it made Vroom investors shudder, pushing the stock down 15%.
For the third quarter, Vroom (NASDAQ:VRM) forecast total revenue would be in the range of $268 million to $290 million, with a net loss per share of between 42 cents and 37 cents. That compares to the FactSet estimate of $344.6 million.
For the second quarter, comparing to the same period in 2019, total units sold decreased 8% to 11,082; revenue fell 3% to $253 million; and gross profit dropped 45% to $7.6 million.
Earlier this month, Carvana said second quarter sales rose to $1.12 billion from $986.2 million a year earlier.
Vroom reported a second quarter loss per share of 34 cents versus the expected loss of 63 cents. Sales of $253.1 million compared to the estimated $234.9 million.
There is more demand for used cars “than we can currently fulfill,” Vroom Chief Executive Officer Paul Hennessy told Reuters, citing a 20% increase in cities that may indicate people are buying cars as they abandon urban living. “As the V-shaped recovery hit us in May, we’ve been doing everything in our power to add cars because customers want them.”
Vroom shares touched a record on Wednesday of more than $69. The company went public in June at $22 a share.
