Motley Fool  Jul 18  Comment 
An analyst upgrades shares of the leading provider of flash-sale deals a week ahead of its quarterly report.
Benzinga  Jul 18  Comment 
Motley Fool  Jul 18  Comment 
Groupon stock is down, but is it out? One analyst sees a light at the end of the tunnel.
Financial Times  Jul 18  Comment 
Deal site buoyant alongside fashion brand Coach, but toy maker Hasbro suffers Star Wars angst
Yahoo  Jul 18  Comment 
The bank reported second-quarter earnings that beat estimates on both the top and bottom lines. Bank of America’s stock is down about 17% since January 1. Netflix (NFLX) – The online streaming giant has signed a contract with CBS Studios...
Benzinga  Jul 18  Comment 
Piper Jaffray’s Samuel J. Kemp believes Groupon Inc (NASDAQ: GRPN) is “quickly narrowing its product and regional focus to the categories where it can be successful, while deploying marketing dollars to drive growth in North America local...
Motley Fool  Jul 17  Comment 
The leading provider of flash-sale deals reports quarterly results in two weeks. If the last three reports are any indication, you may want to hold on to your hats.
Motley Fool  Jul 12  Comment 
These two hated tech stocks trade far below their IPO prices for good reason.
Motley Fool  Jun 23  Comment 
Maxim Group initiates coverage of the group-buying site, slapping it with an ambitious $5 price target.


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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