Groupon Inc. (NASDAQ: GRPN) may still be a troubled stock compared to the recent IPO trends. A couple of issues are helping it overcome some woes so far today. The CEO showed in his annual letter to shareholders that the recent bumpiness is due to the growth rates of Groupon.
The company now claims over 11,000 employees and has efforts in 44 countries as of now. The CEO letter also noted an enormous and untapped opportunity in its core business: “Through smarter deal targeting, there is significant growth waiting to be unlocked in our core daily deal business. In the United States alone, we have more than 10 million geo-located subscribers engaging with Groupon every month who have yet to make a purchase. We are kicking off a campaign to activate these customers, primarily by featuring deals that are closer to them; as you might imagine, deal proximity is a major driver of purchase behavior.”
Mobile is growing here as the rate of the total deals is now 30% mobile rather than 25% just four months ago. Another benefit today is that a smaller firm called B. Riley upgraded the shares from Sell to a less negative Neutral rating.
Investors are so far cheering for Groupon this morning with it shares up 5.5% at $10.52 against a 52-week range of $9.82 to $31.14. The online coupon and daily deals site still has a market value of $6.8 billion according to Yahoo! Finance.
Keep in mind that this Groupon IPO was at $20.00 and shares rose 50% at the IPO launch before losing their value and then some.
JON C. OGG
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.