NOTE: Trending tickers is an index compiled exclusively by Yahoo Finance every day. It’s a list of companies whose stocks are seeing the biggest bump in interest as measured by your searches
Here are five of today’s trending tickers: Emeritus corporation (ESC), Strayer Education (STRA), for the second day in a row Conn’s (CONN) is on the list, Nordstrom (JWN), and our pick today -- Groupon (GRPN).
The local deals website is getting crushed, down 17% in the first half of the trading day. Groupon beat estimates last night, and initially popped 10% on the headline. Unfortunately the stock reversed after investors read the rest of the report.
So why the mad dash to sell Groupon? Management guidance. While they are calling for Q1 revenues to beat expectations it comes with an adjusted net loss of somewhere between $0.02 - $0.04 a share, something they blame on higher marketing and acquisitions expenses.
This has been the problem with Groupon since they went public. Dealing with local merchants means building up a large sales staff and presents problems particularly as they expand overseas.
While the company’s management has markedly improved, the problem lies with the business model and those problems are not so easily solved.
That’s your trending ticker for today. We’ll see you back here Monday.