Why Shares of Cazoo Are Rising Today
Shares of online used car company Cazoo Group (NYSE: CZOO) traded nearly 10% higher as of 10:22 a.m. ET Monday for no obvious reason. A big institutional investor piled into the stock last week.
Now a penny stock, Cazoo has been hammered this year, with the stock down more than 91%. Over the last week alone, shares are down more than 15%.
But recently, the company announced the results of a strategic review in which it is planning to wind down its operations in the European Union. The move will enable the company to save roughly 100 million pounds by the end of 2023, which Cazoo believes can hasten its path to profitability. In these difficult market conditions, investors are less interested in growth and more focused on profitability.
Source Fool.com
