TrueCar's business model requires them to aggressively spend cash until they hit an inflection point where it flips to a profitable operation.
Revenue is growing nicely...
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But TrueCar hasn't made a profit yet, & it's losses are trending lower (all that TV spending)
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TrueCars issues more shares to fund TV spending...
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How long will investors hang on for this?
Many high growth companies like Amazon have this model. Wall Street's investors judgement on TrueCar's future is seen in it's stock price. Although TrueCar's stock price is slightly above it's IPO, it's well below the market overall.
Compare investing $1000 in AutoByTel vs TrueCar this year:
- AutoByTel = $1460
- TrueCar = $520
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Is TrueCar running out of runway needed for it to take off?
What is the catalyst that TrueCar needs for it to hit critical mass?
