BREAKING news! Carvana & Vroom is bleeding cash. Is Ecommerce in auto DOA?

[Cullen C]

That's definitely new(ish). That was historically a big part of their value statement. I've asked them in the past about shipping or picking up a vehicle in the case fo a return from South Florida and the only applicable charge kicked in if you were over the mileage allotment but within the timeframe for a return. Otherwise, there were no separate "shipping" charges.

Interesting that it is a new development for them, coincidentally or perhaps not Carvana has begun charging for regional inventory moves as well.

 

[jscole86]

So, I found a specific 2015 Used Lexus GX 460 that my wife wants. I ended up going through Truecar, which put me in touch with Vroom only to see that big fat $499 shipping cost.

That's a pretty good shipping rate for that distance.

 

[Cullen C]

Tried to share this with Steve Stauning on LinkedIn in response to his recent thoughts on the Carvana valuation but it seems he must have accidentally blocked me....maybe he will be able to see this and respond here instead

 

[JamieS]

Never seen that piece before, great find!

 

[Alexander Lau]

Does Amazon's New Deal With Hyundai Spell Doom for TrueCar?
https://www-fool-com.cdn.ampproject...ons-new-deal-with-hyundai-spell-doom-for.aspx

 

[joe.pistell]

@Cullen C Great Amazon video from 1999

AMAZON STOCK CHART (see 1999, stock price was $50ish)

Consider this... The best selling car in 1999 was a Toyota Camry, base MSRP was ~$20grand. Lets say you put that $20grand in AMZN stock. That $20grand is now worth $750,000​

 

[joe.pistell]

And.. lets say in 2003 you heard that Sears IPO was coming out and you put another $20grand in it...

In 2 years your $20grand was now worth $240grand, but, just like Amazon, you hold for the long term. Today, your $20grand is worth $4,000.


Ouch.

 

[Lissa]

The Car360 takeover may give us insight into Carvana's current photo booth. It's possible that the booth slows production AND it also may be a signal that the expensive Carvana photo booth is not a critical part of the sale.

​

From an investor's POV, it's a roll-out story where the biz model is rubber stamped and rolled-out across the USA. Growth Investors LOVE the top line growth they're seeing. They're assuming that existing markets will increase YoY. Carvana has removed all of the costs and talent demands that it could making it an easy to run biz model for a takeover candidate (I can see many players wanting a shot at this one).

Yup I agree with you.

 

[Cullen C]

 

[joe.pistell]

Wow, they crushed the top line
EPS of $-0.37 misses by $-0.03
Revenue of $475.29M (+ 127.0% Y/Y) beats by $50.13M

https://seekingalpha.com/article/41...-2018-results-earnings-call-transcript?page=2

Lots of info in there