Shares of online car-shopping service TrueCar (NASDAQ:TRUE) surged on Friday, as bargain-hunting investors waded back in after Thursday's market rout.
TrueCar's shares closed on Friday at $2.68, up 10.3% from Thursday's close.
TrueCar's shares were clobbered in February after the company disclosed that it was breaking up with a longtime partner. USAA Federal Savings Bank, a TrueCar partner for 13 years and the source of 29% of its customers, decided to end the partnership as of Sept. 30.
But despite that disruption, TrueCar's management team said that it expected to be able to make up enough ground to deliver full-year results roughly in line with 2019's, as the end of the USAA relationship will open other growth opportunities for the company.
The loss of the USAA partnership was a heavy blow, and it exacerbated TrueCar's price decline when coronavirus worries sent stocks plummeting last week. But as CEO Mike Darrow pointed out last month, the end of the partnership will allow TrueCar to pursue new relationships and look to expand into new audience segments.
Assuming that the response to the virus pandemic doesn't disrupt the U.S. economy too badly, TrueCar investors could be pretty pleased with where the company stands a year or so from now.