Cars.com, Because Used Car Sales Are Back, But Online

Cars.com Inc. (Nasdaq: CARS) is uniquely positioned to make a comeback riding favorable macro tailwinds and ramp of new solutions launched in the recent past. In the meantime, the stock is trailing near multi-year lows after the company went public in 2017. To some extent, the stock reminds of dotcom era busts that consolidated a few years and came back with stronger fundamentals. Following up on our note on Carvana Co. (Nasdaq: CVNA) yesterday taking a closer look at used car sales businesses that may benefit disproportionately not just from…

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Carvana: Use Correction, If Any, Wisely, The Story Has Wheels

Carvana Co. (Nasdaq: CVNA) will come out with second-quarter results on Wednesday, 5Th August. These results are important given the fundamental business is facing major headwinds while investors are extremely bullish on the stock that is trading near an all-time high at a valuation that is among the richest in the car distribution industry, if not in the broader technology space. Meeting such elevated expectations is difficult for any business even during normal times; leave alone when the used car sales are declining for the last five months. We won’t…

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Favorite Long And Short Ideas From Recent IPO Season

There has been a barrage of IPOs over the last few months. Having added some of those names to our database of proprietary earnings model, we thought of sharing our initial thoughts on our favorite names for potential Long and Short. Vroom (Nasdaq: VRM), the online car-buying platform that is being compared to Carvana (Nasdaq: CVNA) has been received well, but the hype around the name is a bit over-exaggerated right now. We have written a detailed note on the company. We believe Vroom has executed well, driving growth in the…

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How High Can Vroom Stock Go, If Compared To Carvana

Vroom Inc (Nasdaq: VRM) will start to trade today and given how eagerly some of institutional investors were waiting for the IPO, it won’t be surprising to see the company coming out flying as the trading opens. Yes, everything next generation is driving excitement on the Street, case in point Nikola Corp (NKLA), and Vroom will be no exception. Most Sell-side researchers going to point out similarities between Vroom and Carvana Inc (NYSE: CVNA), another high flyer e-commerce car retailing play that had a phenomenal run over last 2-3 years,…

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