Vroom, an online used car retailer, has announced the shutdown of its e-commerce operations, marking a significant downturn for the company that once reached a valuation exceeding $5 billion in 2020. The closure follows a stock price plummet of 45% after hours and comes amid a challenging time for the used car sector, with Vroom's inventory pile-up and Ally suspending their credit line. The company is laying off 800 employees and shifting its focus towards auto financing and artificial intelligence. This development has raised concerns about the future of online car sales and the potential impact on other players in the market, such as Carvana. Speculation about a possible squeeze on Carvana's stock and its fate in the industry is growing, as the sector faces headwinds and the broader economy shows signs of a looming recession. Additionally, Northwest Motorsport, owned by Sonic Automotive, has also announced it is shutting down, further indicating the industry's distress.
Falling like domino's.... $CVNA may not make it if we have a recession... https://t.co/ujmBwrKPED
Recession? What Recession? 🔥🔥🔥 Another Online Used-Car Dealer Bites the Dust: Vroom, 3.5 Years after Red-Hot IPO, Shuts Down as Ally Suspends Credit Line. In an SEC filing and an announcement on its website Monday evening, Vroom Automotive said that it shut down as used… https://t.co/kc7pvCVsVv
Wild times: Another major used car dealer shutting down! Northwest Motorsport. 11 locations. Owned by publicly traded Sonic Automotive. Yesterday, online car dealer Vroom also announced it's shutting down. 2 used car dealers closed in 2 days. Tide is going out. https://t.co/yTXwgF2brk
Don't think anything will change but another head wind for $CVNA https://t.co/cvloP4iUEg
Another Online Used-Car Dealer Bites the Dust: Vroom, 3.5 Years after Red-Hot IPO, Shuts Down as Ally Suspends Credit Line. The SPACs, Shift Technologies and Carlotz, are already dead. Carvana is still out there, after its distressed debt exchange https://t.co/aYmfnPeWbr https://t.co/lWMKOhDH4d
Manheim U.S. used car prices, every time we've had a big drop in pricing it has signaled a recession. It's comforting to know that consensus thinks we have a soft landing. $VRM $KMX $CVNA $AN https://t.co/3fuNUKzBxr
Vroom hits the brakes on its online used car business to go full throttle on auto financing and AI: https://t.co/oQMydv1fD8 by TechCrunch #infosec #cybersecurity #technology #news
Vroom hits the brakes on its online used car business to go full throttle on auto financing and AI https://t.co/mFZmkTtpGQ
$VRM (-43.4% pre) Vroom Shares Tumble After Laying Off 800, Winding Down Ecommerce Business - MW https://t.co/nnoWJ2Kn4l
We need an emergency podcast 🚨 2 years ago, Vroom ran a Super bowl commercial. Today, the company announced it’s shutting down. • Will online car sales survive? • Will Carvana suffer a similar fate, or is it different? Who do you want on a live Twitter Spaces with me ?!
If you have the data, you can make more informed decisions. Vroom $VRM is shutting its business down. I was asked about the company early 2023 for bottom fishing. Web scraped data showed inventory piling up. https://t.co/D3iKll6tut https://t.co/BqroBsNaNB
Before and After:$VRM Up +20% today Down -45% AH -> GAME OVER!! => GOING TO LIQUIDATE THE INVENTORY!! More bad news for $CVNA and the Used car sector! https://t.co/sfZ7ktyGYv
BREAKING: Vroom, the once high-flying online auto retailer, has ceased all e-commerce operations. In 2020, Vroom peaked with a valuation *exceeding* $5 billion. An end of an era. https://t.co/qiqJpjrUtX
$CVNA - Squeeze Coming? https://t.co/WZbeYQn9yl
$CVNA / $TSLA - Apex Predator? If only there were signs... cc @FINRA https://t.co/heli4sSitw