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Vroom (VRM) shares closed its first trading day at $47.90 with a 117.73% rise. Today VRM stock is 2.69% up and its trading at $49.19.
American online used car seller Vroom Inc (NASDAQ: VRM) made its IPO on Tuesday, June 9, through stock exchange Nasdaq. The company saw its share value skyrocket in the first day and continues to rise today. The rise comes despite the company not being in a streak of losses since its inception in 2012.
Today Vroom stock is trading at around $50. Let us also mention that the American online used car seller priced its public offering at $22 per share, above its price range of $18 to $20 per share.
With a market capitalization of $5.53 billion, the company is moving fast to offer car buyers a platform to purchase second-hand vehicles amid social distancing caused by the ongoing COVID-19 outbreak.
The company’s top executive is betting that more people will give online used-car-buying a preference, which seems to agree with Wall Street. “The pandemic is a tough time for people in the United States and elsewhere, but more U.S. residents are considering Vroom, looking for contactless car shopping and delivery,” said Vroom Chief Executive Paul Hennessy.
“We actually have momentum coming our way, as people are more likely to consider car shopping at the moment, besides other advantages that Vroom offers,” he added.
Vroom Business amid Covid-19 Pandemic, Will VRM Stock Rise?
The company raised $468 million during the initial public offering, as the market continues recovering from the coronavirus shake. The company is strategically placed to benefit from the current market turmoil and might thrive largely post COVID-19.
“The market is placing a high value on next-generation companies that can thrive in a post-COVID-19 economy,” said Mathew Kennedy, a senior IPO market strategist with Renaissance Capital
With people finding cheaper means of transport that will not endanger them in regards to COVID-19, used car online business is likely to boom. Such companies are utilizing the latest technology in AI to assist customers to get the best available service while shopping online.
During the IPO, the company announced that it is offering about 21.25 million shares, with a market capitalization of about $2.48 billion. Its business operations remain largely impacted by the coronavirus as more people remain in lockdown to avoid contracting the coronavirus. “The COVID-19 pandemic has impacted us in a number of ways, including an adverse impact on our e-commerce operations,” said Vroom in a statement.
As a result, the company has taken measures to keep its business running, whereby in late March it cut vehicle prices to bolster its sales.
Want to know how businesses are doing amid these unstable times? Read business news on Coinspeaker.