Don’t buy in ipo.
Wait for it to drop lol
One of my best performing stocks I bought at IPO and it has gone up 287% in 3 years (300% before COVID). I would do my research before just not buying. With that said, I would not buy $VRM at any point in time.
LOL I have one of those too…I have another one that actually dropped more than 50% after IPO & I bought more & now up more than 200%…
I am not fundamentally against buying at IPOs, I was just talking specifically about vroom.
I bought Zoom at IPO. I wouldn’t touch this superfund site at any price.
They’re probably racing to get an IPO out before Hertz goes bust and liquidates their cars crashing the market.
Would that really matter? They just buy more at lower prices and sell with the 30% markup.
This is the new normal. so called “disrupter” companies trying to file for IPO without making profits.
Their loss was $40 million…
All that paperwork filing for the IPO justifying their business model and how they make money. I agree with you it’s an easy pivot but you don’t want that to happen in the middle of the filing or they would have to amend it and then the street can’t validate whether the model is solid blah blah blah.
Timing is everything
I doubt anyone who has been on this site, signs up for their IPO lol
Who would file to go public now? It’s got disaster written all over it, the numbers are awful.
I should have bought Carvanna at 30/share in March -_-, hind sight 2020.
Jackson Browne said it best about Stock trades and gambling winnings:
Forget about the losses, you exaggerate the wins
You mean short the ipo, right? You don’t profit from “watching” it drop.
Lol I am trying to stay away from providing stock advice …will leave that to Jim Cramer lol
Man I just can’t see how this business model makes money (and it doesn’t right now).
I’ll praise Vroom all day for what they paid me for my Impreza and Sienna, and how absurdly easy the whole process was. But holy frickin frick I just can’t see how they can stay in business with the crazy markup on the cars they sell. Maybe the people actually buying from them don’t do any kind of research and just want to “buy a car online”? Idk…
How do you think Carmax has survived so many years. Markup is just a minor. Actual money is made in the warranties and services sold, not to mention double digit APR’s on 72 to 84 months.
Didn’t really think of that. Still seems like it’s just a route for people who don’t properly research buying a car. Or people with poor credit who just see “ooh I can get this car for $xxx/mo!” but will be completely and, for the most part, irreversibly upside down for the remainder of their car-buying life.
It’s not about “buying car online”
As I have said multiple times,
Normal Consumer doesn’t mind if the car dealer makes “reasonable” profit while selling them a car. They want transparency just like any other purchase transaction.
This is the only sub-industry in retail I can think of where the dealer profit is based on hiding information from buyer.
People do not want to spend hours “playing the negotiation” game, arguing about hidden “dealer prep fee” added to online price, on so on.
People are willing to pay for convenience. Why do you think brokers exist.
Carvana, Vroom, carsense etc provide open pricing which makes comparison easy and added benefit of home delivery, 3 day returns etc.
Also on their financial side they have less overhead in terms of real estate makes having low markup easier