Jim Cramer Likes Carvana Over Vroom

Author:
Publish date:
Video Duration:
33

Vroom expanded its Initial Public Offering to 21.25 million shares and the price was boosted to $22 a share, raising $468 million for the online seller of used vehicles.

Vroom earlier had marketed 18.75 million shares for $18 to $20 a share.

The company, whose backers include L Catterton, General Catalyst Partners and T. Rowe Price Associates, moved up the pricing of the initial public offering to Monday after earlier planning to sell the shares on Wednesday, according to a report from Bloomberg.

But the company hasn't been profitable since operations began in 2012.

So, when does Vroom think it'll reach profitability?

Vroom CEO Paul Hennessy told TheStreet's Katherine Ross in an interview Wednesday, "Now, we've set a target for ourselves of around 200,000 units and think, compared to 2019, that would call it 10XR scale. We think when we get to a 10XR scale, the business starts to get to a level of self-funding. So that's the targets that we've set."

Jim Cramer says that he still likes Carvana. 

Watch the video above for more.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

Watch More of the Latest Videos from TheStreet and Jim Cramer