Vroom Inc VRM shares are trading higher by 7% to $1.28 going into the close of Thursday's session. Shares of several used car retailers are trading higher amid the approaching UAW strike deadline.
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 VRM, potentially driving up sales and revenues.
When new car prices rise due to a strike-related supply shortage, some consumers may opt for more affordable used cars instead. Vroom's 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 odds of a United Auto Workers strike are 90%-plus, Evercore ISI analyst Chris McNally said Thursday.
"A good compromise is when both sides are unsatisfied," McNally wrote in a note. "We are likely going to have a bunch of discontented people."...Read More
According to data from Benzinga Pro, Vroom Inc has a 52-week high of $2.82 and a 52-week low of $0.73.
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