Benzinga  4 hrs ago  Comment 
Piper Jaffray analyst Gene Munster said that if Groupon Inc (NASDAQ: GRPN) divests businesses, it may raise $730 million and add more than $1 billion to its market capitalization. Munster argued that the "stealth assets" are "underappreciated...
Wall Street Journal  Apr 15  Comment 
A consortium of investors is close to signing a deal to buy a controlling stake in South Korea’s Ticket Monster from Groupon, valuing the mobile-commerce company at nearly $800 million.
Benzinga  Apr 14  Comment 
Aron Pinson was recently a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. LPS Financial Chief Investment Officer and MicroFundy blog author Aron Pinson discussed Groupon Inc (NASDAQ:...
Motley Fool  Apr 7  Comment 
Groupon is going through a transformation, and this makes it a particularly risky investment. However, Groupon stock is also offering substantial upside potential from current levels.
Motley Fool  Apr 3  Comment 
The deal site is now much more than just a place to save money with local merchants.
Forbes  Mar 31  Comment 
Groupon recently knocked one out of the social park with the way they managed a unique product offering, the Banana Bunker, on Facebook. It's valuable for marketers to see this because it illustrates the power of what I like to call "Brand...
Reuters  Mar 31  Comment 
Private equity firms KKR & Co LP and Hong Kong-based Anchor Partners are in talks to buy a majority stake in Groupon Inc's South Korean unit for around 350 billion won...
Benzinga  Mar 30  Comment 
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. Groupon Inc (NASDAQ: GRPN) shares were trading lower by $0.22 (2.3 percent) at $7.39 in Monday's session. At this time, the upgrade from Wunderlich last...


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]

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki