What's Going On With Vroom Stock Wednesday?

Vroom Inc VRM shares are taking off Wednesday following strong quarterly results from Carvana Co 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.