Vroom, an online used-car marketplace, got an enthusiastic reception from investors when it began trading on the Nasdaq Tuesday.
The stock $VRM soared 117 percent, doubling its IPO price of $22 a share.
Unlike businesses around the country that have struggled to make it through coronavirus lockdown restrictions, Vroom thrived.
"Customers are now appreciating our model even more than before [with] contact-free delivery and contact-free sales practices," Paul Hennessy, CEO of Vroom told Cheddar Wednesday.
Comparing the first quarter of 2019 to this year, Vroom saw substantial growth in the number of vehicles available on its mobile platform and average monthly users.
Cheddar
"Once we knew that we had some tailwinds in our business, we absolutely thought this was the right time to go, and we took advantage of that," Hennessy said. "It's a great day for our company, a great day for employees, and a real testament to the model."
Vroom has had a strong showing raising capital in the private markets. In December, the company announced a $254 million Series H financing round.
Illustration by Rob Jejenich/Cheddar
Vroom intends to invest the capital raised in the public markets into the marketing and development of its platform.
Though recent surveys the company has done suggest that customer willingness to buy a car online has doubled in three months, Hennessy doesn't believe that Vroom is only surging in popularity because of the pandemic.
"We see these changes as absolutely structural," Hennessy said. "Now we want to work even harder to deliver for our customers and deliver for our shareholders."
Much like all the upheaval shaking the world, the huge swings rocking Wall Street may feel far from normal. But, for investing at least, this is normal.
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A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
