SeekingAlpha  Aug 21  Comment 
By Marshall Hargrave: Shares of Groupon (NASDAQ:GRPN) have been a perennial underperformer since IPOing in 2011. Shares tumbled after Q2 results, falling as much as 18% in a day. They've since climbed back. While the volatility has been great news...
SeekingAlpha  Aug 20  Comment 
By Akshansh Gandhi: For Groupon (NASDAQ:GRPN), there seems to be no respite from a perpetual drop in the share price. In addition, the company's recent results were weak. Groupon, in the second quarter of 2014, reported revenue of $752 million,...
SeekingAlpha  Aug 18  Comment 
By Alex Cho: Groupon (NASDAQ:GRPN) has been dead money for quite a while, and while on-going risk factors impair the company's fundamentals, the strategy going forward is compelling, and growth opportunities in new categories make it a compelling...
SeekingAlpha  Aug 15  Comment 
By Anup Singh: Daily deals company Groupon's (NASDAQ:GRPN) performance has gone from bad to worse this year. The stock has taken a massive beating in 2014, declining close to 50%. In addition, Groupon's recent second-quarter results were not up to...
SeekingAlpha  Aug 14  Comment 
By Shock Exchange: Groupon (NASDAQ:GRPN) was once a high-flying stock that was the apple of momentum investors' eye. With the limitless potential of the Internet to drive growth and the initial hit with customers in search of daily deals, the...
SeekingAlpha  Aug 14  Comment 
By John Alford: Recently Groupon (NASDAQ:GRPN) released its latest earning results and missed expected revenues by 1.5%. However, "Mr. Market" reacted strongly and the run-up of the past few days quickly reversed and GRPN fell 15%. The stock fell...
TheStreet.com  Aug 14  Comment 
NEW YORK (TheStreet) -- My recent buy recommendation on Groupon  completely missed the mark -- to put it mildly. That has caused me to rethink my stock evaluation process. The stock (then) traded at $6.46. Groupon's stock closed Wednesday at...
SeekingAlpha  Aug 12  Comment 
By George Kesarios: Groupon's (NASDAQ:GRPN) latest quarter was not exactly bad, simply not what the market expected. For the second quarter of 2014, the company announced $1.82 billion in billings, revenue of $751 million, adjusted EBITDA of $59.1...
MarketWatch  Aug 12  Comment 
Former social media darlings Groupon and Zynga have each seen their shares lose about 70% since their IPOs. Investors left holding the bag are losing patience with the lengthy turnarounds at each firm, writes Therese Poletti.
DailyFinance  Aug 11  Comment 
Filed under: Company News, Technology, Earnings, IPOs, Investing www.zynga.com Some of the hottest Web-based companies went public three years ago. LinkedIn (LNKD) and Zillow (Z) have gone on to become big winners for early investors. Groupon...


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]

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki