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Summary:

Zipcar reported fourth quarter earnings this week and Wall Street was not happy (shares traded down an immediate 13 percent). Despite actually posting its second consecutive quarterly profit of $3.9 million, concerns are rising about revenue numbers, particularly in Europe.

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Zipcar reported fourth quarter earnings this week and Wall Street was not happy (shares traded down an immediate 13 percent). Despite actually posting its second consecutive quarterly profit of $3.9 million, concerns are rising about revenue numbers, particularly in Europe where Zipcar is pegging a lot of its future growth.

The car sharing company is doing 25 percent year to year subscriber growth but large fleet costs continue to be a concern for investors, not to mention Europe’s debt crisis and questions about trying to grow revenue in those economies. All said, Zipcar is investing heavily in building its business because it believes car sharing isn’t going away and when the dust settles, it wants to own that whole market.

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  1. Zipcar will remain important, as will peer-to-peer carsharing, which is enabled by companies like on http://www.whipcar.com/ in the UK and on http://www.rent-n-roll.de/ in Germany. While there might be temporary problems, in the long run these ideas are just too good to die out. Instead, we can see the opposite trend…

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