Shares of online car-shopping platform TrueCar (NASDAQ:TRUE) closed up on Wednesday, as investors gravitated to the stock while pondering the need for tools that could facilitate car-shopping while practicing social distancing.
TrueCar's shares closed at $2.56 on Wednesday, up about 12.8% on the day.
Here's what probably drove the stock higher today: TrueCar makes it a lot easier to shop for a new car without going to a dealership, and that is starting to seem like something that could become quite popular in the weeks and months to come.
TrueCar's online platform is designed to simplify new-car shopping. It allows the user to get a guaranteed price from a local dealer and to complete much of the sales transaction online.
As the U.S. looks toward reopening its economy while concerns about the COVID-19 virus persist, tools that facilitate no-human-contact commerce will likely become very popular. That's likely to be good news for TrueCar, which works with new-car dealers around the country to set up agreed-price transactions, and collects a fee (typically a few hundred dollars) from each sale.
Investors looking forward to hearing from TrueCar's senior management team won't have to wait long. The company is scheduled to report its first-quarter earnings results after the market closes on Thursday, May 7.