It's Time To Have An Opinion On Auto Ecommerce

2020년 10월 26일

Afternoon gang!

This is a real simple idea here that I think over time will be a low n' slow winner. As autobuying, like all other industries, becomes increasingly susceptible to the forces of digitization and ecommerce, we are looking at the potential for one or two companies to own the entire space within the United States. The top two companies right now are VRM and CVNA, and I think it's become clear over the last month or so that CVNA is clearly the superior player in the space. Increased selection, more than triple the gross margins, a stronger balance sheet, and a huge lead in brand awareness make this the name to own.

Instead of owning the company outright with directional risk, short VRM to reduce your beta exposure and take advantage of the likely winner-take-all scenario playing out.

Cheers!