Benzinga  Oct 16  Comment 
Groupon (NASDAQ: GRPN) (http://www.groupon.com) today launched a campaign to raise funds for Baby2Baby, the organization dedicated to providing basic necessities like diapers, cribs, strollers and clothing for low-income children. Every $10...
SeekingAlpha  Oct 14  Comment 
By Stock Gazer: Up until August 2014, Groupon's (NASDAQ:GRPN) stock fell by almost 40% within the span of 12 months. Since August, however, the company's stock has seen some improvement in its price and has managed to increase by 22%. It is...
TechCrunch  Oct 14  Comment 
 Companies like Square, Groupon, PayPal and Amazon are all vying to be the primary tech partner for merchants at the point of sale in the U.S., and as more companies replace their legacy equipment with low-cost tablets, the race is heating up...
Benzinga  Oct 10  Comment 
Fairchild Semiconductor Intl Inc (NASDAQ: FCS) -14% - Semiconductor stocks are under pressure Friday as Microchip Technology announced negative preliminary guidance. Caesars Entertainment Corp (NASDAQ: CZR) -14% - On Thursday, the company’s...
MarketWatch  Oct 10  Comment 
Twitter Inc. shares fell more than 5%, to $52.41 Friday amid a broad selloff in tech stocks. The tech sector declined along with the broader market following revenue warnings from Microchip Technolgoy and Juniper Networks . Other notable losses...
Benzinga  Oct 10  Comment 
Analysts at Evercore Partners downgraded Groupon (NASDAQ: GRPN) from Equalweight to Sell. The price target for Groupon is set to $5.50. Groupon shares have dropped 42.63% over the past 52 weeks, while the S&P 500 index has gained 13.21% in...
Benzinga  Oct 10  Comment 
Motley Fool  Oct 6  Comment 
Groupon has registered solid sales growth this year, but a continued lack of profitability has caused investors to flee.
Motley Fool  Oct 5  Comment 
Is it about relationships? Transparency? Data-crunching? Yes.
TheStreet.com  Oct 2  Comment 
NEW YORK (TheStreet) -- Shares ofaGroupona awere down 1.15% to $6.49 in morning trading Thursday after the company announced the debut of 'Snap by Groupon,' a free app that pays cash to customers who buy certain groceries and other items at any...
Forbes  Sep 30  Comment 
The company has made some strides in terms of product development and expansion on mobile, but there are still many issues that need ironing out. While investors may have shown some faith in the stock in recent months, the run up may not continue...


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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