let's bring in vroom's ceo paul hennessy.k, you got a bit of a selloff because you disappointed on guidance but give us a snapshot of what the landscape looks like right now because all we have been hearing is that nobody can get their hands on used cars, and the prices are going up. >> you have been hearing the truth, liz. we, as you articulated, we had a great second quarter. we had 74% e-commerce growth. so during covid, customers are turning to us and they appreciate the contact-free way of doing business, whether it's on the sales side or whether it's actually selling us a car. we have had great feedback from customers that they are turning to vroom because of the model and so we believe the second quarter was incredibly validating for the model, and yeah, what we did see was that customers were telling us that during tough times, they are looking to buy cars that are more affordable. so vroom, you know, in its agile model, pivoted so it could serve those customers exactly what they were looking for, and even though our

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i know you're talking here with the vroom ceo.e disappointing q 2-3 guidance impacts that. it's a red hot time to be an auto dealer. >> thank you, phil we are going to continue this discussion with paul hennessy. the stock has been on a bit of a tear this morning off 14% in part off of the earnings report relating to the guidance. paul, we want to talk about that and then we want to get into some of the larger issues taking place in the auto motive market. what do you think youmissed in all of this? >> well, i think that the market is probably reacting to the change in consumer behavior that we've seen in our business as a result of covid. and what has happened is customers have changed their buying preferences vroom used to sell cars in the 28 to 30,000 range and now it's 23 to 25,000 range vroom is meeting that demand we're encouraged while the average selling price of the vehicles is lower, our gross profit for unit is ascending. we had a very strong second quarter. we improved our guidance for third quarter and i think the str

we know that he likes to go vroom-vroom in a big cool truck and we know that kids love him. one of the big things we learned about him is how trump handles a crisis. right because whenever trump is dealing with a problem he has a certain set of moves that he always tries. sort of like a video game character, you know. first he pretends the problem doesn't exist. then he pretends he already solved the problem. and if that doesn't work he blames the media and the democrats for the problem he probably created. now unfortunately none of those moves have worked with coronavirus. no matter what he tries, it just keeps on spreading. so yesterday trump had no choice but to pull out his superpower move, changing his tone. >> a remarkable change of tune for president trump today, the about-face coming during a late afternoon news conference. >> the president changed his tone today after months of insisting that covid-19 was in retreat. he said it will get worse before it gets better. >> after downplaying the virus for weeks the president came before camera with a blunt assessment. >>

cost cutting have changed during the pandemic shares of vroom wider expecting a bigger than expected loss. saying the drop in demand and uncertainty around vehicle pricing early on lead it to reduce inventory in the first half of the quarter. the ceo will be on 7:45 a.m. earn time. aspen technology soaring topping estimates prior to these results. the stock had been down about 19% this year. back to you. >> thank you very much. >> in global news, huawei is back in the cross air. showing their supply chain with other technology more from china. >> thank you there was a little provision tucked into the defense spending bill that will come into fruition two huawei related events. the expiration was a 90 day reprieve they don't have a whole lot of business in the u.s some of those smaller rural carriers do business with huawei we'll see if they'll continue to work once this license expires or if it is extended by the trump administration the other event we are watching is whether or not the provision tucked in is called 889. whether or not that is going to come to fruition under that pro

. >>> take a look at vroom. that's just fun to say. vroom. the online used car company reported higher profits last quarter but the big problem, they gave a bleak outlook for the third quarter. you know what, investors don't like that. that stock down 15.5% in the premarket, down nearly 11 bucks. >>> take a look at cisco. after a dismal quarter, they announced a restructuring plan that will include layoffs and voluntary early retirement. the silver lining, the current quarter revenue will drop by only 9% to 11%, less than wall street is expecting. isn't helping the stock, down 8% in the premarket. >>> take a look at smile direct club. last quarter's revenue fell 45% compared to last year. that was still far higher than the analysts bet. the stock, as you can see, down 5.5%. yes, i'm going to say it. not a lot of smiles on that. down to $8.81. >>> check the futures. we were negative. we turned positive on the jobless claims numbers. now we are kind of slipping down, let's call it flat, shall we. the dow off 28 points. the s&p flat essentially

i'm so used to doing the exchange where there's nobody else >> simmer down i got this >> shares of vroom are falling nearly 20% they are still up huge since june ipo predicting a bigger than expected loss. >> we'll show you back to beginning of march why are we showing you the beginning of march the pandemic was picking up momentum businesses were shutting down or not going to be open to the public people said nobody will buy cars the big three said we're shutting down production that was the bank that said to investor buy into the auto de dealer stocks because it will be limited quantity of new vehicles it will be a market that will take off and boy have these markets taken off. three things have contributed to the auto dealer stocks. they have gradually been expanding and as they have expanded, their revenues and profits have been growing as well the average auto dealership right now, about $17.5 million thatincludes the underlying real estate and it depends on the location, the brands you'll be selling and also the carvana trade continues to be red hot. this is an online trade that ha

. >>> vroom dropping as a publicly traded company, online used car saler cited the pandemic for the losse down also 14% or 9.76 different story for fossil those shares surging after reporting a smaller than expected loss and easily exceeding -- the company says it expects continued growth in the e-commerce handle as well. still ahead, sill zen, a policy ullr neighborhood safety app started testing a beta contract feature and is about to boost its effort in the fight even more xte citizen ceo will join us, ne this selenite grey is so pretty isn't it? wow. jim could you pop the hood for us? there she is. -turbocharged, right? yes it is. jim, could you uh kick the tires? oh yes. can you change the color inside the car? oh sure. how about blue? that's more cyan but. jump in the back seat, jim. act like my kids. how much longer? -exactly how they sound. it's got massaging seats too, right? oh yeahhhhh. -oh yeahhhhh. visit the mercedes-benz summer event or shop online at participating dealers. get 0% apr financing up to 36 months on select new and certified pre-owned models. you say the custom

names like cisco systems, lyft, vroom. the ceo will join us tomorrow. a really momentum stock. smile direct. we have have a mixed picture for all of them. shares have been down about 29% so far this year. the ride-hailing company expected to report a loss of a dollar per share on 336.7 million in revenue which is down 61% from a year ago. of course that's the pandemic. people were not taking or hailing rides. cisco systems, the only dow member to set to report this week. the computer networking giant is expected to report 74 cents per share. that is down 11% a year ago. 12 billion in revenue. down 10% from a year ago. it is interesting, because we brought you avaya, the big cloud company. avaya had a great court h quarter. it is haves and have-nots in the pandemic. as it they head into the world of materials, financials, small caps, airlines, the investment scale starting to get a little heavy on one side. today's "countdown" closer, on board, saying small caps, picking those on the heavy side. we welcome intrepid capital president ceo mark travis. why

vroom shares have also skyrocketed.k at this, up 3% now but they have tripled since their ipo which was in june. you just saw carvana report a loss. the online market for cars, it's getting crowded. investors might be saying all right, where's the profit going to come from. shares are so expensive, especially as you have your traditional carmakers, they are starting to ramp up new car production. that's more to compete with when you look at the car sfpace, use versus new. stuart: got it. the dow up 150 points helped by apple, a dow stock. apple is up, what, about eight bucks as we speak. >>> speaker pelosi admitting china would prefer a joe biden win in november. whoa. watch this. >> i take no pleasure in saying this but china, what they said is china would prefer joe biden. that's their conclusion, they would prefer joe biden. stuart: i'm not sure that joe biden will be real tough on china but we will report the story as it comes along. >>> i have been saying this. i believe that mail-in voting will cause absolute elec

i will start with vroom. that's an online used car company.r them, ashley. ashley: yeah, they do. there's a lot of up-front costs to get this under way. they are expecting a loss of about 70 cents per share, revenue about $222 million. but really, you have to look at the long game. there's a lot of money that has to be put in, as i say, on inventory and getting the platform up and running. let's not forget, this just launched june 8th. the price was $22. my, oh, my, it's coming along very well, closed at $47.90 on its first day. it spent around $1 billion on online -- on the platform. it's also talking about expanding in the future to selling auto parts and insurance. interesting to see what they say, how people are changing their habits and buying cars online. there's only 1% of the used car market buying online. you could say plenty of room for growth. stuart: you could. again, we go back to the subject at the top of the hour. the virus changes everything. it really does. including buying a car, for heaven's sake. thanks, ash. >>> the virus