Vroom Inc (NASDAQ: VRM) stock lost 9.84% of its trading price on July 13, 2023 trading session. It opened trading at $2.31, lowering to $2.02, hit a high of $2.41, and closed trading at $2.20 with an intraday trading volume of 12.978 Million.
Despite the intraday decline, VRM prices added more than 81.82% to its trading prices monthly. Vroom Inc’s (NASDAQ: VRM) market capitalization is $305.426 Million, and the average trading volume of its stock is 8.471 Million.
The ongoing movement of VRM stock can also be termed a short-covering rally. If prices sustain above $2, it might be a sign of a bullish trend reversal. However, press time pre-market opening showed a decline of 0.45% in VRM stock price.
VRM stock has consolidated for the past 8 months between $0.80 to $1.50. VRM stock sustains above 200, 50 days EMA and it showcases mild bullishness. The immediate resistance of the stock is $2.76; if buyers succeed in breaking $2.76, the rally’s next phase may soon be triggered.
However, if VRM stock faces rejection from $2.76, it will likely consolidate in the range between $1.52 to $2.76. The sudden Vroom Inc trading volume increase might be a speculative activity.
In the 52 weeks time frame, VRM stock lowest traded at $0.73, and its highest trading price was $2.76. The annual price target for 2023 of Vroom stock was $1.06, which is around 51.70% lower than the current trading prices.
Slow EV Development Supporting Traditional Automobiles’ Growth
In the past few quarters, production of EV vehicles surged significantly. Still, the demand is growing slowly because the users/consumers believe electric technology is relatively new and less reliable than traditional automobiles.
Vroom Inc (NASDAQ: VRM) Earnings and Revenue
From Q2 2022 to Q1 2023, Vroom Inc (NASDAQ: VRM) has constantly reported negative/less revenue than the estimated figures. For Q1 2023 estimated revenue of the company was $255.29 Million, but the company reported revenue failed to bypass estimated figures, and it reported 23.04% less revenue in the same quarter.
The Earnings Per Share (EPS) of VRM share slipped by 2.73 and reported fewer EPS than the estimated figures. The estimated revenue for Q2 and Q3 2023 is $226.52 Million and $255.90 Million respectively.
TradingView states, over 125 Million VRM shares are free-floating, and the remaining 13 Million shares are closely held by the company’s financial backers or the board of directors.
Vroom, Inc’s revenue-to-profit conversion of 2022 constitutes 8% of gross profit, -18% of earnings before interest, taxes, depreciation, and amortization (EBITDA), -20% of earnings before interest and taxes (EBIT), and the remaining -23% of net income.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/07/14/vrm-stock-could-reach-3-as-ev-market-witnesses-a-slowdown/