guardian.co.uk  11 hrs ago  Comment 
Trump released his personal financial disclosure statement last week – but it’s unclear if his financial wellbeing is substantial or of the Groupon variety Could we be about to elect a one-man financial bubble as president of the United...
Motley Fool  May 16  Comment 
Both e-commerce players look attractively valued. Time to place a bid for eBay, or is Groupon a better deal?
Motley Fool  May 2  Comment 
One analysts says to not buy Groupon yet -- another says don't buy it ever.
MarketWatch  May 2  Comment 
Groupon Inc.'s stock tumbled 5.3% in morning trade Monday, on the heels of an 18% plunge in the previous session, after RBC Capital turned bearish on the online coupon company. Analyst Mark Mahaney cut his rating to underperform, after being at...
Benzinga  May 2  Comment 
Groupon Inc (NASDAQ: GRPN) reported robust Q1 results, with the revenue beating the estimate and the consensus. RBC Capital’s Mark S. Mahaney downgraded the rating on the company from Sector Perform to Underperform, while lowering the price...
Motley Fool  May 1  Comment 
The group-buying site operator stumbles after a rough quarterly report.
Motley Fool  Apr 29  Comment 
These three stocks helped lead the market lower. Find out why.


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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