Why Vroom's Stock Is Vrooming Today

Vroom Inc VRM is trading higher Thursday morning after the company reported better-than-expected first-quarter earnings results.

Vroom offers an end-to-end e-commerce platform for buying and selling used cars. Used car sales have accelerated as the recent chip shortage limited the production of new vehicles.

What Happened: Vroom reported first-quarter financial results on Wednesday after the close. The company reported an earnings loss of 57 cents per share, which beat the Street estimate for a loss of 63 cents per share. It reported quarterly revenue of $591.1 million, which beat the estimate of $518.19 million. 

“Vroom delivered record results in the first quarter of 2021, with total gross profit nearly doubling versus the same period in the prior year as we delivered exceptional growth and improving unit economics. Our strong results were led by robust e-commerce unit growth of 96%, coupled with accelerating e-commerce gross profit per unit through the quarter," said CEO Paul Hennessy.

Related Link: 26 Stocks Moving in Thursday's Pre-Market Session

VRM Price Action: Vroom traded as high as $75.49 and as low as $26.96 over a 52-week period. At last check Thursday, the stock was up 11% in premarket trading at $39.30.

Image by 200 Degrees from Pixabay.