Forbes  Sep 18  Comment 
In trading on Thursday, advertising shares were relative laggards, down on the day by about 2.3%.  Helping drag down the group were shares of Marchex (MCHX), down about 44.2% and shares of Groupon (GRPN) off about 2% on the day.
Motley Fool  Sep 16  Comment 
After a rough year, there are quite a few reasons to like Groupon stock.
SeekingAlpha  Sep 15  Comment 
By George Kesarios: If one looks at what has been going on in the social space over the past several weeks, he will notice that Groupon's (NASDAQ:GRPN) stock has been outperforming the space. In many cases by a lot. (click to enlarge) As you...
Benzinga  Sep 12  Comment 
In a report published Friday, Bank of America analyst Paul Bieber reiterated a Neutral rating and $7.50 price target on Groupon Inc (NASDAQ: GRPN). In the report, Bank of America noted, “Yesterday we met with Eric Lefkofsky (CEO), Jason Child...
TheStreet.com  Sep 10  Comment 
NEW YORK (TheStreet) -- Shares ofaGroupona rose 6.05% to $7.09 in afternoon trading Wednesday after the online deals company announced its integration withaApple'sa upcoming Apple Pay, the tech giant's own version of a mobile wallet. "Bringing...
Benzinga  Sep 10  Comment 
Groupon Inc (NASDAQ: GRPN) is one of the many companies involved in the launch of Apple Pay, Apple Inc.'s (NASDAQ: AAPL) new entry into the mobile payments space. The Details Along with Staples, Panera, Macy's, Target, McDonald's, Subway...
Motley Fool  Sep 9  Comment 
When compared against competitors such as Amazon and Groupon, eBay looks quite attractive in terms of valuation and financial performance. Is it the right time to place a bid for eBay stock?
StreetInsider.com  Sep 9  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Groupon+%28GRPN%29+Confirms+Integration+with+Apple+Pay/9818445.html for the full story.
Motley Fool  Sep 8  Comment 
Even as the daily-deals pioneer tries to reinvent itself, investors lack confidence in Groupon's future.
Forbes  Sep 8  Comment 
Internet companies have seen a tremendous valuation boost in recent quarters, which has encouraged them to step up their investments. Be it e-commerce or social networking, companies are trying to acquire as many customers as they can in addition...


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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