SeekingAlpha  Aug 15  Comment 
Forbes  Aug 15  Comment 
Like Groupon for businesses, YouTube is not a profit-making machine for every artist or label, but rather a marketing platform for talking to, understanding and monetizing both new and existing audiences.
Motley Fool  Aug 8  Comment 
The leading provider of flash-sale deals takes off after a blowout quarter and a move into private-label fitness apparel. It has now come through with six consecutive weeks of gains.
Motley Fool  Aug 2  Comment 
The leading provider of flash-sale deals takes off after a blowout quarter.
SeekingAlpha  Jul 29  Comment 
Motley Fool  Jul 28  Comment 
The coupon specialist's stock jumped on a better-than-expected earnings report.
Benzinga  Jul 28  Comment 
$5.28 - March 4 high $5.12 - Intraday high as 10:10 AM $5.00 - March 3&5 highs $4.76 - Current price as of 10:10 AM $4.71 - Intraday low as of 10:10 AM $3.97 - Wednesday close $3.78 - Wednesday close If content...
MarketWatch  Jul 28  Comment 
Groupon shares up 28% in premarket trades
Benzinga  Jul 28  Comment 
Groupon Inc (NASDAQ: GRPN) reported robust 2Q results, with the revenue and adjusted EBITDA ahead of the consensus expectations. Goldman Sachs’ Heath P. Terry maintains a Neutral rating on the company, while raising the price target from $4.10...


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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