Benzinga  Jul 17  Comment 
In a report published Friday, Morgan Stanley analyst Dean J Prissman maintained an Equal-Weight rating on Groupon Inc (NASDAQ: GRPN). Groupon announced the acquisition of OrderUp, an online food takeout delivery marketplace, like GrubHub Inc...
MarketWatch  Jul 17  Comment 
Groupon Inc. is acquiring online and mobile food ordering and delivery service OrderUp, enhancing its local food and drink business.
Benzinga  Jul 16  Comment 
Groupon Inc (NASDAQ: GRPN) shares rose 3.4 percent on Thursday after the company revealed it will acquire OrderUp, a startup focused on food delivery operations in and near college towns. "Online food ordering and delivery represents an...
TechCrunch  Jul 16  Comment 
 Groupon appears to be readying itself to expand into food delivery and take on services like GrubHub. Today, the company announced its acquisition of food-delivery service OrderUp and detailed its plans to expand into the $70 billion sector....
TheStreet.com  Jul 16  Comment 
NEW YORK (TheStreet) -- Groupon shares closed up by 3.4% to $5.17 on Thursday, after the e-commerce marketplace announced the acquisition of OrderUp, an on-demand online and mobile food ordering and delivery marketplace. The financial...
TheStreet.com  Jul 13  Comment 
NEW YORK (TheStreet) -- Groupon surged Monday after receiving an upgrade from Macquarie Capital USA. Marvell Technology Group soared on chatter that the company may be a buyout target. Rackspace jumped after announcing support for...
TheStreet.com  Jul 13  Comment 
NEW YORK (TheStreet) -- Shares of Groupon Inc  were popping, up 5.27% to $5.09 in early market trading Monday, after analysts at Macquarie raised their rating on the online deal site this morning. The firm upgraded Groupon shares to...
Benzinga  Jul 13  Comment 
Anacor Pharmaceuticals Inc (NASDAQ: ANAC) shares climbed 57.22 percent to $133.02 in pre-market trading after announcing positive top-line results from atopic dermatitis studies. Gilat Satellite Networks Ltd. (NASDAQ: GILT) shares rose 5.31...
SeekingAlpha  Jul 10  Comment 


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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