CarGurus Inc (NASDAQ:CARG) shares are trading lower by 4.1% to $17.54 Friday morning, pulling back following Thursday strength. Shares of used car retailers were otherwise trading higher this week amid the UAW launching a historic simultaneous strike. A strike could impact vehicle production at large automakers and potentially drive used car prices higher.
Why It Matters
During a UAW strike, production of new vehicles may be disrupted or delayed. As a result, consumers who were planning to buy new cars may turn to the used car market as an alternative. This increased demand for used cars could benefit CarGurus, potentially driving up sales and revenues, which could lead to a rise in its stock price.
When new car prices rise due to a strike-related supply shortage, some consumers may opt for more affordable used cars instead. CarGurus online platform offers a range of used vehicles at various price points, making it an attractive option for price-sensitive consumers during a strike.
What’s Going On?
The United Auto Workers (UAW) union has kickstarted their simultaneous strike against the Detroit three automakers after failing to reach an agreement on pay hikes and other amenities.
As per plans outlined by UAW President Shawn Fain in a Facebook live at 10 p.m. ET, workers will stage a simultaneous walkout at three factories…Read More
According to data from Benzinga Pro, Cargurus has a 52-week high of $24.22 and a 52-week low of $9.14.
