Vroom Stock Forecast: Will VRM Stock Rise Above $2?
Vroom Stock Forecast 2023: VRM is technically bullish and the trade recommendation is a buy. The VRM Stock Prediction for the next 12 months is $1.6.
“Vroom” is a US-based e-commerce platform that specializes in selling used cars online. Vroom went public in June 2020 and is listed on the NASDAQ stock exchange under the ticker symbol “VRM.”
Vroom Stock Performance
- 1 M: -5.8%
- 6 M: -42.5%
- 1 Y: -82.6%
Vroom Stock Forecast: 12 Months Target
| Vroom Target Price, 12 Months | $1.6 |
| Piper Sandler | $1 |
| Wells Fargo | $1 |
| Baird | $2 |
| Jefferies | $1.3 |
| Truist Securities | $2.6 |
Vroom Stock Forecast: Quarterly Results
Vroom reported its Q4 of 2022 result on February 28, 2023. The earnings were more than Wall Street expectations while the company fell short of the revenue target. Here are the snippets of the 4th quarter of 2022 for Vroom:
- EPS: Vroom came out with an adjusted quarterly EPS of $0.61 per share. The results topped Wall Street expectations. Over the last four quarters, the company has surpassed consensus EPS estimates three times.
- Revenue: Vroom reported revenues of $209.35 million for the quarter that ended in December 2022 which fell short of Street forecasts.
- For the year, the company reported a loss of $451.9 million, or $3.28 per share. Revenue was reported as $1.95 billion.
VROOM Last 3 Quarters
| (USD) | Sep-22 | Jun-22 | Mar-22 |
| Revenue | 340.8M | 475.44M | 923.77M |
| Net income | -51.13M | -115.09M | -310.46M |
| Diluted EPS | -0.37 | – | – |
| Net profit margin | -15% | -24.21% | -33.61% |
| Operating income | -74.92M | -90.55M | -108.56M |
| Net change in cash | -82.42M | -111.15M | -417.24M |
| Cash on hand | – | – | – |
| Cost of revenue | 273.47M | 409.08M | 842.13M |
Vroom Stock Forecast Today
| Overall Outlook | Neutral |
| 1. Market's Wisdom | Partially Positive |
| 1a. Market Data | Partially Positive |
| 1b. Technical Recommendation | Neutral |
| 2. Crowd's Wisdom | Neutral |
| 2a. Social Media Buzz | Steady |
| 2b. Social Media Sentiment | Neutral |
Vroom Stock Forecast 2023: Technical Analysis
Performance of Tesla Stock on the Last Day
- Open Price: $1.03
- Close Price: $1.06
- Gain/Loss: +2.91%
- Overall Market Cap: $146.464M
Vroom reported its earnings recently and it beat the Wall Streets expectation. After the earnings, Vroom stock price closed in green on the last trading day.
VRM stock has been surging after testing the support at around $0.98. This is crucial support for VRM and the bulls will have to keep the stock price above this support.
At the time of writing, VRM is trading below both the 50-day and 200-day moving averages. On the next trading day Vroom will likely retest the 200-day MA which is at $1.07. Breaking above it will take the VROM above $1.10 where it is likely to restest the first resistance level at $1.15.
The buyers have entered the market. The Relative Strength Index confirms the bullish momentum of the VRM stock. The RSI is at 48.01 and it is likely to rise higher as more buyers have entered the market.
The Stochastic RSI and the MACD indicator are both positive for the VRM stock. The trade recommendation is a buy.
Vroom Stock Forecast: Bull Case
Growing demand for online car buying: As more consumers embrace e-commerce, the demand for online car buying is expected to increase. Vroom’s business model is built around this trend, which could result in significant growth opportunities for the company.
Large and fragmented used car market: The used car market is a large and fragmented market, which provides Vroom with the opportunity to capture market share by leveraging its platform’s technology and operational efficiency.
Innovative platform and technology: Vroom’s platform and technology allow for a seamless online car buying experience, which can differentiate it from traditional brick-and-mortar dealerships. This could help Vroom capture market share and grow its customer base.
Positive industry trends: The automotive industry is experiencing positive trends, such as an increase in consumer demand for SUVs and trucks, which could benefit Vroom as it focuses on selling these types of vehicles.
Vroom Stock Forecast 2023: Bear Case
Competition: Vroom faces competition from other online car buying platforms, as well as traditional brick-and-mortar dealerships. Increased competition could result in pricing pressure and a decline in market share.
Dependence on third-party logistics providers: Vroom relies on third-party logistics providers to handle its vehicle transportation and delivery, which could result in supply chain disruptions and delays. Any issues with the logistics providers could impact Vroom’s customer satisfaction and lead to a decline in business.
Dependence on used car market: Vroom’s business model is focused on selling used cars, which can be affected by fluctuations in the used car market. Changes in consumer demand for certain types of vehicles or changes in supply could impact Vroom’s sales and profitability.
Regulatory risks: The automotive industry is subject to a wide range of regulations and compliance requirements, which could result in additional costs and legal liabilities for Vroom.
Also Read: NIO Stock Forecast 2022
Who are the Main Competitors of Vroom?
Carvana: Carvana is an online platform that allows customers to buy, sell, and trade cars entirely online, similar to Vroom. Carvana also offers a 7-day return policy and a vending machine car pickup option, which sets it apart from traditional dealerships.
Shift Technologies: Shift is another online platform that allows customers to buy and sell used cars from the comfort of their own homes. Shift also offers free home delivery and a 5-day return policy.
Autotrader: Autotrader is an online marketplace that connects buyers and sellers of new and used cars. Autotrader has been in operation for more than 20 years and has a large database of listings, which sets it apart from newer players in the market.
TrueCar: TrueCar is an online platform that allows customers to search for new and used cars based on their preferences and location. TrueCar also provides price transparency and a network of certified dealerships.
Traditional dealerships: Traditional brick-and-mortar dealerships still dominate the car buying market, and many of them have also launched online platforms to compete with companies like Vroom. These dealerships have established relationships with customers and may offer additional services such as financing and maintenance
–Nandini Panchal
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.
