Used Car & Truck Market Turmoil Mauls Freshly IPO-ed Unicorn Online Car Dealer Vroom. Shares -20% | Wolf Street

It boils down to this: These people at Vroom don’t know how to make money selling used cars. They’re just trying to buy the business.

This falls right back into the whole mania of money-losing companies that sell mundane consumer products or services – such as used cars or taxi and delivery services or lodging services – but are somehow considered tech companies that walk on water and can continue to lose money. And investors, those in the unicorn startup arena and those in the stock market, have been in love with them for years and have continued to shovel huge piles of money at them, despite their never-ending losses, in the hopes of somehow pumping up their valuations.

Used Car & Truck Market Turmoil Mauls Freshly IPO-ed Unicorn Online Car Dealer Vroom. Shares -20% | Wolf Street