Here is why AutoWeb Inc. (AUTO) stock shine on Thursday?

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AUTO Stock
AUTO Stock

AutoWeb Inc. (AUTO) shares surged 4.52% in after-hours on Thursday, January 20, 2022, and closed the daily trading at $3.70. Even in the regular trading session of Thursday, AUTO’s stock gained 11.67%. AUTO shares have risen 2.91% over the last 12 months, and they have moved up 8.92% in the past week. Over the past three months, the stock has gained 12.38%, while over the past six months, it has soared 14.94%.

Let’s discuss its recent news and developments briefly.

AUTO new Tesla Model 3 offer

On January 20, 2022, AutoWeb, Inc. (AUTO) and Autonomy entered into a new business relationship. The relationship provides car shoppers visiting any of AutoWeb’s automotive web properties, including Car.com and Usedcars.com, the opportunity to subscribe with Autonomy to drive a Tesla Model 3 on a month-to-month basis after a three-month hold period.

AutoWeb is one of the largest new vehicle lead generation providers in the automotive industry with a nearly 30-year history developing longstanding relationships with OEMs and auto dealers throughout the U.S. to connect them with in-market auto shoppers.

AUTO new appointments

On January 07, 2022, AutoWeb, Inc. (AUTO), appointed Carlton Hamer as executive vice president, chief financial officer (CFO), succeeding Michael Sadowski, and Josh Barsetti as vice president, controller, and principal accounting officer. Sadowski will remain with the company until at least March to facilitate a smooth transition for the company’s new finance executives.

AUTO expanded its CarZeus business

On November 30, 2021, AutoWeb, Inc. (AUTO), expanded its CarZeus vehicle acquisition business into the Austin, Texas market, thereby extending its consumer-focused vehicle acquisition service beyond its original San Antonio, Texas market.

The CarZeus segment purchases vehicles directly from consumers and resells them through wholesale channels to deliver improved value to both dealers and consumers. The expansion will provide new options to the Austin community to dispose of their current vehicles and enables CarZeus to serve customers in two of the top five most populated cities in Texas.

AUTO latest financial results

On November 04, 2021, AutoWeb, Inc. (AUTO), announced its financial results for the third quarter ended September 30, 2021.

Q3 2021 financial highlights

  • AUTO reported total revenue of $17.2 million in the third quarter of 2021 compared to $17.8 million in the third quarter of 2020.
  • Gross profit was $4.4 million in Q3 2021 compared to $6.4 million in the year-ago quarter.
  • Total operating expenses in the third quarter of 2021 were $7.3 million compared to $6.7 million in the year-ago quarter.
  • It suffered a net loss of $3.1 million or $0.23 per share in Q3 2021 compared to a net loss of $0.4 million or $0.03 per share in Q3 2020.
  • Adjusted EBITDA was $1.7 million compared to $1.0 million in Q3 2020.
  • The company ended the third quarter with cash, cash equivalents, and restricted cash of $14.2 million compared to $15.1 million on December 31, 2020.

Conclusion

The new Tesla Model 3 offer was the reason behind its gains on Thursday and it can continue to surge on Friday as well.

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