SeekingAlpha  Aug 18  Comment 
Forbes  Aug 11  Comment 
The stock has tumbled by around 50% this year, based on the uncertainty surrounding the company?s future. Nonetheless, we continue to remain bullish on Groupon?s long-term growth prospects. Considering the growing opportunities in the offline to...
TheStreet.com  Aug 10  Comment 
NEW YORK (TheStreet) -- Groupon price target was lowered to $6.40 from $8.50 at Deutsche Bank, which reiterated its "buy" rating. The firm also cut its 2016 earnings estimates to $0.07 from $0.10 per share. Groupon lowered 2015 EBITDA...
Forbes  Aug 10  Comment 
Entrepreneurs aren't just making the headlines at Forbes, they are gaining prominence across the world. But what does it take to be one? We are hosting a #Under30Summit Twitter chat today with Forbes Editor Randall Lane and Brad Keywell,...
MarketWatch  Aug 10  Comment 
Shares of Groupon Inc. fell nearly 4% in early trade Monday after the company's price target was lowered to $8 from $11 at Brean Capital and other brokerages lowered full-year estimates on the daily deals site, which reported second-quarter...
Benzinga  Aug 10  Comment 
Tom Forte at Brean Capital said that Groupon Inc (NASDAQ: GRPN)'s earnings report offered "a mixed bag, with a little of everything." However, when looking at the company as a whole, Forte found value – revising the 12-month price target to $8...
Benzinga  Aug 10  Comment 
Groupon, Inc. (NASDAQ: GRPN) announced that private equity firm, Sequoia, has agreed to invest in Groupon India. Groupon will remain a significant shareholder. "The potential of the Indian market is huge -- our decision to...
The Times of India  Aug 10  Comment 
Sequoia Capital, one of the most prolific startup investors in the country, is helping Groupon India break away from its $3-billion Chicago-based parent.


Groupon (NASDAQ:GRPN) is a group buying site which allows merchants to sell deals or discounted offers on their goods or services. The merchant can require that a minimum number of customers must purchase the deal before it becomes valid, or the merchant may limit the number of deals that can be sold. Individuals can subscribe to Groupon, and they receive targeted deals based on their location. Groupon makes money by charging customers for each offer, but the company pays merchants a negotiated percentage of each sale.[1]

Business Overview

For the full year 2010, Groupon's total revenue was $312.9M. This was substantial increase over the total revenue of $14.5M in 2009. The company had not achieved a net income however, as of 2010. In 2009, its net loss was $1.3M and in 2010 it was $413.4M. The largest cost the company incurred in 2010 was marketing, which was $290.6M in 2010. [2] This $20 IPO placed the value of the company at $12.7B.[3]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on November 3, 2011. The company offered 35M shares each for $20. This was above the $16-$18 price range. The company sold 35M shares. This deal raised $7B. The lead bookrunners of the deal were Morgan Stanley, Goldman, and Credit Suisse.[4]

Trends & Forces

High Marketing Expense

Groupon's marketing in 2010 was nearly as large as its total revenue. The company uses marketing to encourage individual to subscribe to Groupon and to purchase live offers. Groupon believes that while it has faced a high marketing costs, such costs will be lower in the future as the company will have created a customer base. However, if such costs remain elevated, Groupon's profits will be directly lowered.[5]

Highly Competitive Industry

While Groupon is a large player in the daily-deal market, the market is very competitive. Groupon does not have any significant way to differentiate itself aside from the type of offers and the level of the discount. This means that defending its market share is relatively hard.[6]

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