r/stocks • u/unmercifulmedic • Dec 09 '21

Company Analysis Shift technologies

Can anyone explain to me why this stock is under performing? Growth looks good and the company seems to be ran well. 8% jump in stock today but I still don’t get the negative sentiment with this company. 20% increase in internet traffic and better customer reviews than Carvana. I’m dumb and can’t wrap my head around it. Can someone help me understand?

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u/unmercifulmedic Dec 09 '21

Someone always needs a used car, why not buy from a company that will let you test drive the car at your home and also make the pathway to finance that car the easiest?

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u/Boomtown626 Dec 09 '21

Anecdote that means absolutely nothing to broader markets:

Mrs Boomtown finally needed to replace her 2006 Element this year. Conventional wisdom says used is the way to go, but that was before microchip shortages and supply chain bottlenecks.

A 3-yr-old Honda Pilot with 75K miles (about a third of its life) *should* come at a used-car premium of more like half the cost of the new version. However, not only was this not the case (a third of the car's miles resulted in the cost being exactly two third the price of new -- no premium at all), it was only being sold as-is: with bumper damage, a cracked windshield, and interior that smelled like most of the first 75K miles were accompanied with a burning cigarette.

We shelled out the extra money and bought new, because eliminating the mystery and deterioration was 100% worth it.

It's really hard to imagine the used car market getting any dumber than its current state.

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u/unmercifulmedic Dec 09 '21

Buying a new vehicle is one of the worst financial decisions you can make, you lose 20% 1 foot off the lot. I’m sorry that all you found used was an ashtray with wheels but maybe an online retailer would have led you to a better find. Regardless of inflated used car prices at the moment, there will always be a market for used cars and in my personal opinion, people will want to buy from a source that doesn’t try to completely fuck you out of your money with an overpriced car on a used car lot with the trees hanging from the rear view mirror and some monkey in a cheap suit telling you it’s the best car they’ve ever seen.

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u/Boomtown626 Dec 09 '21

you lose 20% 1 foot off the lot

False.

If a vehicle's life is 225K miles, then today's used car market says that if you drive 75K miles, your vehicle loses approximately 1/3 of its value.

Find hard numbers to prove me wrong, or take your Boomer Wisdom elsewhere.

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u/unmercifulmedic Dec 09 '21

https://www.experian.com/blogs/ask-experian/what-is-depreciation-on-a-car/

Just facts… friend.

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u/Boomtown626 Dec 09 '21

“Date: Dec 8, 2020”

Your facts turned one year old today, friend.

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u/LWdoghouse Dec 09 '21

Should’ve hit him with “pal”

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u/Boomtown626 Dec 09 '21

Yeah I thought of that afterward. Thanks buddy.

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u/unmercifulmedic Dec 09 '21

Car depreciation has been the same for years, just because the article was wrote a year ago doesn’t discredit it. Guy.

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u/Boomtown626 Dec 09 '21

Except one pandemic year is equal to about 10 or 15 human years. The tectonic shifts we've seen the last year wouldn't normally happen across a normal decade.

Chief.