Piper Sandler's Big Bet on Used Vehicle Tech: Carvana and ACV Auctions

Ladies and gentlemen, buckle up! We're diving headfirst into the world of used vehicle technology stocks, and Piper Sandler is leading the charge with Carvana and ACV Auctions. These aren't your grandpa's car dealerships; these are tech-driven powerhouses revolutionizing the automotive industry. Let's break it down!

Why Used Vehicle Tech Stocks Are the Next Big Thing

First things first, why are we so bullish on used vehicle tech stocks? Simple: innovation, disruption, and growth, growth, growth! Artificial intelligence is the greatest investment opportunity of our lifetime, and companies like Carvana and ACV Auctions are at the forefront of this revolution. They're leveraging technology to make the car-buying experience seamless, transparent, and downright exciting. This is the future, folks, and you don't want to miss out!

Carvana: The Online Car Buying Revolution



Carvana is the Taylor Swift of the used car world. It's all about the e-commerce experience, transparent pricing, and unique delivery options like car vending machines. Imagine buying a car from the comfort of your own home, with no haggling and no hassle. That's Carvana for you! The company has established itself as the third-largest used car retailer in the United States with a market share of 1.8%, and it's only getting bigger.

But it's not all sunshine and rainbows. Carvana faces intense competition from other online platforms and traditional dealerships enhancing their online presence. The growing trend towards online shopping, accelerated by the COVID-19 pandemic, presents an opportunity for Carvana to capture more market share. Additionally, Carvana can explore international markets or underserved regions in the U.S. to expand its customer base.

ACV Auctions: The Digital Marketplace for Dealers

ACV Auctions, on the other hand, is all about the dealers. This digital marketplace connects automotive dealerships and wholesalers, making the buying and selling process efficient and transparent. With a robust network of over 25,000 dealers across the United States, ACV Auctions is a force to be reckoned with. The company's innovative technology, strong dealer network, and data-driven insights make it an attractive investment opportunity.

ACV Auctions has demonstrated impressive growth, achieving revenue of $637 million in the last twelve months, representing a 32.4% year-over-year increase. The company reported substantial growth in both marketplace buyers and sellers, with year-over-year increases of 23% in marketplace buyers and 25% in sellers by the end of 2024. This growth indicates strong attraction to its digital auction model. However, the market's reaction to ACV Auctions' performance was tempered by softer guidance provided for the first quarter of 2025 and the full year.

The Market Trends and Financial Performance

The recent financial performances and market trends in the used vehicle sector provide a mixed outlook for Piper Sandler's investment thesis on Carvana and ACV Auctions. While both companies have shown growth and potential in the used vehicle market, they also face significant challenges such as high operating costs, intense competition, and market volatility. The stabilization and potential improvement in the used vehicle market, as indicated by robust auction activity and less-than-typical depreciation, support a positive outlook for both companies. However, the intense competition and market volatility pose challenges that could impact their financial performance and market position.



The Bottom Line

So, what's the bottom line? Piper Sandler's investment philosophy aligns perfectly with its preference for used vehicle technology stocks like Carvana and ACV Auctions. These companies are leveraging technology to disrupt the automotive industry, and the growth potential is enormous. Do you want to be part of the future? Then you need to own these stocks!

Don't miss out on this opportunity, folks! The used vehicle tech revolution is here, and Carvana and ACV Auctions are leading the charge. BUY NOW and watch your portfolio soar!