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Vroom Stock Dives After Earnings Report

Vroom Stock Dives After Earnings Report

Vroom (VRM) reported fourth-quarter results late Wednesday that beat revenue estimates but fell short on earnings. Vroom stock plunged.




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The online dealer of used autos reported an adjusted loss of 44 cents a share on revenue of $405.8 million. Analysts expected Vroom to report a loss of 37 cents a share on revenue of $401.2 million.

Vroom stock plunged 16.8%, near 36.50, during after-hours trading on the stock market today.

Vroom is among an emerging tier of companies that have migrated the entire process of buying a used vehicle to the internet. Consumers can shop for and buy a car online, then have it delivered without ever leaving their home.

For its first quarter, Vroom expects revenue in the range of $500 to $529 million, vs. estimates of $509 million.

Vroom held its initial public offering on June 9 that raised $468 million, exceeding expectations. Vroom stock soared 117.7% on its first day of trading, closing at 47.90.

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Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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About the author

Erin Clark

Erin is a sports enthusiast who loves indulging in occasional football matches. She is a passionate journalist who flaunts a perfect hold over the English language. She currently caters her skills for the sports and health section of Report Door.

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