Shares of online car-shopping service TrueCar (NASDAQ:TRUE) closed higher on Wednesday as investors continued to show interest in companies that are well-positioned to help facilitate socially distant transactions.
TrueCar's shares ended the day at $3.00, up about 11.9% from Tuesday's closing price.
Like many stocks, TrueCar's shares were battered in the March sell-off as much of the U.S. economy shut down. But while they have yet to fully recover, they've shown signs of life in recent days as investors search for companies positioned to profit if the economy reopens -- but consumers choose to stay home.
TrueCar might be that kind of company. Its online platform is designed to streamline the process of shopping for and purchasing a new vehicle. Users can research different models, choose the vehicle and options they want, and are then matched with a dealer who has the vehicle in stock -- at a guaranteed no-haggle price. For consumers, the service is free: TrueCar gets paid by the dealers, typically a few hundred dollars per sale.
As the U.S. economy reopens, while many are still concerned about the COVID-19 virus, tools like TrueCar's that can simplify "touchless' commerce stand to do well. That's probably why TrueCar's stock was up today.
How did TrueCar do in the first quarter? How has it been doing since quarter-end? I expect we'll get answers to those questions, and many more, when TrueCar reports its first-quarter earnings after the market closes on Thursday.