Online auto retailer Vroom Inc. saw its shares more than double on Tuesday (June 9) on their first day of trading following the company’s initial public offering (IPO). The firm’s stock traded as high as $48.88, up 122.2 percent from the stock’s IPO price of $22. However, it later pulled back a bit to close at $47.90, up 117.7 percent.
Vroom sold some 21.2 million shares and granted underwriters an option to buy as much as about 3.2 million more, raising more than $400 million. The sale valued the company at some $2.5 billion, but Tuesday’s rally took that over $5 billion. In a June 2 announcement, the firm initially estimated the IPO price at $15 to $17 a share, then raised it to $18 to $20 ahead of the final $22 pricing.
The stock, which trades on the NASDAQ under the symbol “VRM,” is rallying even though Vroom lost $41 million on $376 million in revenue in its latest quarter. That compares to a $27 million loss on $235 million in revenue for the same period last year.
The company had previously raised $254 million in a Durable Capital Partners-led Series H funding round in December of 2019. T. Rowe Price Associates, L Catterton and others participated.
Vroom has created a platform that puts the process of purchasing a vehicle directly under the control of buyers and sellers, without any car dealer or other intermediary needed.
In a recent conversation with Karen Webster, Vroom CEO Paul Hennessy said the firm has seen a “small chilling factor on the business” from the COVID-19 pandemic. However, he noted that consumers still want to buy and sell cars even in today’s turbulent times. They’re also more receptive than they’ve ever been to using a digital channel for car purchases or sales, he said.
Hennessy added that many consumers didn’t really like the auto dealership experience even before the pandemic, and the hurdle was getting them to try that first digital purchase. The CEO believes the pandemic and the related rise in online buying could be the jolt the industry needed to promote a much quicker adoption of digital car sales.
Vroom’s IPO comes as a spate of FinTech, InsurTech and other financial services firms staged or announced what seem likely to be successful public offerings. Actual or expected strong IPOs for Lemonade, Shift4 Payments and other companies are a nod to the sea change underpinning the financial space in general, as well as recognition by investors of the “great digital shift” that seems to be underway.
As PYMNTS has noted, the overarching theme is that digital marketplaces can simplify how things have traditionally been accomplished, jettisoning paper and face-to-face meetings.
As the calendar flips to March, college basketball fans are gearing up for another exhilarating NCAA tournament.
In the future, artificial intelligence and cutting-edge technology could change March Madness as we know it. Let’s break down how the digital revolution could transform the Big Dance.
AI is already being used to predict brackets. Gone are the days of agonizing over your picks based on team mascots or your alma mater’s colors. In 2025, AI-powered bracketology is the name of the game. Fans can use algorithms that crunch data points, from player statistics to historical upset probabilities, all at the click of a button.
But beware, bracket enthusiasts. While these AI tools promise to boost your chances of winning the office pool, they can’t account for the quintessential March Madness chaos. You know, the instance where AI can predict everything except the inevitable Cinderella story that ruins everyone’s bracket by the second round.
In a move that would be sure to ruffle some feathers, AI-generated commentary could be used for games. Digital play-by-play announcers would never need a bathroom break and potentially be able to recall obscure statistics from the 1957 tournament in an instant.
Can’t make it to the Final Four? Ten years from now, games might happen in a digital stadium, Forbes reported. With virtual reality (VR) technology, fans could experience the thrill of courtside seats from the comfort of their living rooms.
“AI-generated athletes, inspired by the procedural generation techniques of video game developers … could perform in virtual arenas, exhibiting strategies and plays conceived by advanced predictive algorithms,” Forbes reported.
Just be careful not to get too caught up in the moment with streaming. Wouldn’t want to have reports of fans attempting to rush the virtual court after buzzer-beaters have led to an uptick in living room injuries — especially when that flat screen falls over.
While human coaches still call the shots, AI assistants could one day be indispensable members of the coaching staff. In the next five years, these digital strategists could analyze opponent tendencies and more.
“Building on existing technologies … AI will provide coaches and players with intricate, multi-dimensional data patterns that dramatically enhance both offensive and defensive strategies,” Forbes reported. “These advanced algorithms will analyze vast datasets from numerous games to uncover hidden trends, strategic insights, and predictive cues about opponents’ potential moves.”
Say goodbye to controversial calls. Advanced computer vision systems could assist referees in making split-second decisions, from determining if a player’s toe was on the line for a three-pointer to detecting the slightest touch on a blocked shot.
The Hawk-Eye system is already used in tennis and cricket to help determine fouls, Viso.AI reported.
“This system uses a network of cameras to track the ball and then compares the trajectory of the ball to a virtual model of the playing surface,” the report said. “This system is accurate within a few millimeters, which is much more accurate than the human eye.”
As we dive into March Madness 2025, it’s clear that technology will change the way we experience the tournament. From AI-powered brackets to virtual reality arenas, the digital revolution is coming for basketball. But at its core, the magic of March Madness remains the thrill of competition, the joy of unexpected victories, and the heartbreak of last-second defeats.
So, whether you’re relying on an AI to pick your bracket this year, or screaming at a holographic referee in the future, remember to enjoy the ride. In the unpredictable world of college basketball, sometimes the best strategy is to embrace the madness — digital or otherwise.
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