Boys and girls, let the lessons of Luna/UST this week be a lesson - when an asset falls 99%, it still can fall another 99% off the new price. Whether this means calls or puts - that’s entirely up to you. 
But oh yeah. VRM ded. That was a fun long put. Made more on that one position than I did working full time 52 weeks last year. FML. 
only out of bk. vroom fails almost all sponsors’ key metric test: it has never made a cent of profit, which would make it a viable business…
It would make 0 sense for an LBO because it has neither the ability to take on leverage nor the cash flow to pay it off. But the larger PE firms dabble in everything now because they have too much capital to limit themselves to just LBOs.
Most likely. Someone might want to run Vroom, but someone else might want to take a run at disintermediating new car dealers.
I just sold a car to Shift for $21,800 and they listed if for $22,950. There is no way they can make money like this. They listed so low maybe they have some cash flow issue, idk. Their office and operation reminds me of the dot com days, total chaos but at least where I used to work was not customer facing.
I recently looked at a car on Shift w/ a decent price. Then it showed as adding ~ $1250 fee. I agree the margin is slim but adding $1250 plus perhaps financing, it’s the roll the dice business model.
These companies need to show lots of volume to stay alive and keep rolling over debt, getting new investors. It’s not always a matter of margin when you have this much volume. Have to remember about leverage and market presence. They’re all competing. Plus there’s always back end $
As if current governor(s) in power fix anything
Revenue over profits.
STONKS
10char
Carvana has lost it’s Mojo…
Goes to show Wall Street and it’s cheerleaders at CNBC pump stocks when they want to sell and vice versa. When I was shorting Cvna between 200 and 350 they were talking about it going up to 400-500. I don’t remember seeing any analyst predicting any issues at the company.
nothing like spending hours interviewing and then them telling you the salary range. I like when a recruiter is up front about the salary so I don’t waste my time or theirs
Not to blame the pandemic for everything, but I believe the bubble on some of these pandemic advantaged companies got bigger than their business’s actual value, and now the bubble is burst for many reasons
Stocks like Vroom/Carvana/Zoom/Netflix they all have given their pandemic gains and now trading lower than prepandemic, and the worst is yet to come (IMO). I was tempted for an inverse position in them for a while just couldn’t muster enough courage
9 out of 10 recruiters I have spoken with were upfront with providing a salary range. Some even went as far as providing a bonus percentage and stock options awarded.
More tech layoffs:
Have to put that in context, though. They have 11,000 employees, and a big portion of the folks cut were contractors and marketing staff working on a spinoff fan service project. So while it’s not a great sign, these sorts of minor belt-tightening re-orgs to cull experimental projects aren’t uncommon, either.
Is Carvana tech though? 
