Benzinga  5 hrs ago  Comment 
Groupon Inc (NASDAQ: GRPN) shares spiked up Wednesday as Leon Cooperman of Omega Advisors commented on the stock. Appearing on CNBC, Cooperman said, "we think the underlying asset value of [Groupon] is substantially is in excess of where the...
MarketWatch  Dec 11  Comment 
Car-service giant Uber has the highest valuation of any privately held tech company. But a sky-high valuation could pressure the company, writes Therese Poletti, even as Uber’s defenders justify its vast potential.
MarketWatch  Dec 5  Comment 
Groupon Inc. (TICKER:GRPN) has sold about 40,000 Ugly Sweaters since mid October, as the deliberately tacky assortment became its top seller between Black Friday and Cyber Monday .
Motley Fool  Dec 4  Comment 
It's been a tough year for Groupon shareholders, but the company is showing some potential.
Benzinga  Dec 3  Comment 
Tom Forte of Brean Capital said in a note on Wednesday he is now more bullish on shares of Groupon Inc (NASDAQ: GRPN) following the company's strong holiday sales. Groupon said on Tuesday that it achieved record North American sales on Black...
Forbes  Dec 2  Comment 
There are various drivers (or tailwinds) to the company?s business, including success on the mobile platform, introduction of new features (such as Pages, Gnome, time-based deals), growth in the travel business and reduction in the number of...
Benzinga  Dec 2  Comment 
Today, Groupon (NASDAQ: GRPN) (http://www.groupon.com) announced record-breaking holiday weekend sales* in North America, representing the most successful four days ever in the six-year history of its ecommerce marketplace. For the full Black...
Motley Fool  Dec 1  Comment 
Groupon stock fared miserably in 2014. Will new initiatives help it get back on track next year?
TheStreet.com  Dec 1  Comment 
NEW YORK (TheStreet) -- Shares of Groupon are gaining, up 3.85% to $7.82 in early market trading Monday, after the online discount retailer had its rating raised to "buy" from "neutral" by analysts at Bank of America/Merrill Lynch this morning....
Benzinga  Dec 1  Comment 
On Monday, analysts at Bank of America upgraded shares of Groupon Inc (NASDAQ: GRPN) from Neutral to Buy and raised the price target from $8 to $9.50. Paul Bieber finds the recent progress the company has made validates its turnaround and...


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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