Vroom Inc (NASDAQ:VRM) shares are taking off Wednesday following strong quarterly results from Carvana Co (NYSE:CVNA). Vroom and Carvana both operate online used car retail platforms.
What Happened: Carvana shares surged Wednesday morning after the company reported better-than-expected financial results.
Carvana reported second-quarter revenue of $2.97 billion, which beat estimates of $2.59 billion. The company reported gross profit per unit of $6,520, representing a 94% increase year-over-year. The company also guided for positive adjusted EBITDA in the third quarter.
Carvana also announced an agreement with noteholders representing over 90% of outstanding senior unsecured notes to reduce total debt, extend maturities and lower near-term cash interest expenses.
Check This Out: Carvana Shoots Higher After Q2 Earnings – Here’s Why
After the close on Tuesday, Carvana moved its earnings report date up from Aug. 3, which spooked investors. The stock traded down around 10% before bouncing back and then surging on the actual report.
Vroom is a direct competitor of Carvana and has been moving higher alongside Carvana shares in recent months. The stock is up more than 150% over the last three months.
VRM Price Action: Vroom shares were up 15.6% at $2.59 at the time of publication, according to Benzinga Pro.
Photo: E Bouman from Pixabay.
