Benzinga  Jan 13  Comment 
The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday, January 12, 2017. Alibaba Rumored to Have Interest in Groupon The Rumor: Shares of Groupon (NASDAQ: GRPN) rose on unconfirmed market chatter...
Benzinga  Jan 12  Comment 
Groupon Inc (NASDAQ: GRPN) shares are trading higher by $0.10 (2.7 percent) at $3.60 in Thursday's session. The issue was trading near its low for the session, when there was unconfirmed chatter that Alibaba Group Holding Ltd (NYSE: BABA),...
Benzinga  Jan 11  Comment 
Groupon Inc (NASDAQ: GRPN) reported a sequential decline in North America gross profit growth. The company’s turnaround would likely be “gradual in nature,” Credit Suisse’s Paul Bieber said in a report. He assumed coverage of Groupon with...
Benzinga  Jan 3  Comment 
Shares of Groupon Inc (NASDAQ: GRPN) have plummeted 40 percent since it reported Q3 EPS results on October 26. While the company continues to face “substantial fundamental challenges,” these now appear to be “largely priced in,” following...
SeekingAlpha  Jan 3  Comment 
Motley Fool  Dec 29  Comment 
These stocks helped weigh down the market. Find out why.
DailyFinance  Dec 29  Comment 
Filed under: Finance, Savings Experiment, Did You Know Did you know... If you're not ready to splurge on a gym membership, January can be the best time to snag some low-cost alternatives! For fitness vouchers up to 85% off, check out sites...
Forbes  Dec 22  Comment 
Security professionals have told us over and over that using the same password on multiple websites is a terrible idea. A rash of fraudulent Groupon purchases shows exactly why people should start taking their advice more seriously.


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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