|Bid||2.6000 x 45900|
|Ask||2.6500 x 41800|
|Day's Range||2.6000 - 2.7800|
|52 Week Range||2.3100 - 3.9800|
|Beta (5Y Monthly)||1.35|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 10, 2020 - Feb 14, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||3.65|
O'Keefe Reinhard & Paul Chicago has unveiled its final ad campaign for Groupon as the Chicago-based deals company continues the search for a new ad agency.
Looking at Groupon (NASDAQ:GRPN) from a bird's eye view, the organization seemingly appears extraordinarily relevant. As a digital coupon book of sorts and an effective marketing platform, particularly for small businesses, GRPN is etched into our social media landscape. However, Groupon stock has not followed suit, fading into the backroom closet.Source: Shutterstock Really, no one can blame investors. Since the beginning of 2016, GRPN stock has made almost no progress. Yes, shares have recorded sharp rallies over the past few years. However, each time, the bullishness has faltered. This is in stark contrast to the enthusiasm surrounding the company's initial public offering, with shares once trading firmly in double-digit territory.What perplexes those holding Groupon stock, though, is that the underlying platform remains incredibly popular. When it comes to consolidated business reviews and information, surprisingly few viable competitors exist. We have Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) and Yelp (NYSE:YELP) and that's pretty much it, unless you include the Yellow Pages.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThus, GRPN stock - barring a new competitor disrupting the space - has a permanent seat at the table. However, converting that seat has been a long-term problem. Notably and worryingly, Groupon's gross billings peaked in 2014 at $136.95. In 2018, gross billings fell to barely above $108. * 7 Hot Stocks for 2020's Big Trends To management's credit, they have attempted to change the trajectory of Groupon stock with multiple initiatives. On the front end, the company has improved the interface, making it more intuitive for this digitalized generation. Additionally, they have shifted away from their legacy voucher system and also introduced features such as cash back.That's all fine and well. Unfortunately, I cannot get over the fact that GRPN stock has a double-edged math problem, stymieing its longer-term potential. Numbers Make No Sense for Groupon StockAs a middleman with no genuinely distinct business model, Groupon depends on subscription volume. Obviously, the more people around, the more likely they'll actually use the services, thereby generating revenues. But the problem for GRPN stock is that the user base continues to decline.Based on active customer count, Groupon reached its peak influence in the fourth quarter of 2014 with 53.9 million customers. Again, that's not surprising given that gross billings also peaked in 2014. And like this metric, active customers have largely deteriorated. Click to Enlarge Source: Chart by Josh Enomoto Some optimism sprouted in 2017 when Groupon's active customer count started to inch forward into Q1 2018. Subsequently, the Groupon stock price generated a very strong profit for investors, assuming they bought in January of 2017 and sold later that year in December.From Q1 2018, though, Groupon has sequentially shed its active customers. In the most recent Q3 2019 earnings report, the company had 45.3 million active users. That's the lowest tally since Q3 2016.For the glass-half-full folks, they might contend that lower active users should lead to higher revenue per individual user. And that's really the hope here: in exchange for declining users, each one that's remaining will spend more, driving up earnings.Unfortunately, the revenue generated per active user is also declining rapidly. From Q1 2011 through Q3 2019, the average sales per user is $14.76. However, in the most recent quarter, this metric fell to a staggeringly low $10.95. To put this into perspective, we haven't seen such a low stat since Q2 2010, when Groupon was in its early stages. Click to Enlarge Source: Chart by Josh Enomoto In other words, it's not just that active users are declining; rather, the people that still use the platform are making fewer big-ticket purchases. Lack of Competitive Moat a ConcernAgain, I respect management's efforts to revitalize the Groupon platform to make it more relevant today. But the nagging issue is that despite their endeavors, Groupon stock continues to suffer.The math above makes the recovery narrative not impossible but highly unlikely. But if the math were to improve, consumers must have a reason to use GRPN. I'm not sure how they're going to accomplish this.Currently, the retail ecosystem has rapidly integrated its direct-to-consumer channels. Thanks to developments in e-commerce, it's much easier for popular brands to sell their products to their loyal fanbase. With such pathways, why is a Groupon necessary?Moreover, we're even seeing companies like Amazon (NASDAQ:AMZN) consolidate their supply chain under their corporate umbrella. Wherever you look, businesses are cutting out the middleman.Thus, we come to the ultimate dilemma. GRPN stock is a middleman investment in an era where that business model might go extinct. So, even if the math were favorable, the industry certainly isn't.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Groupon Stock Faces a Double-Edged Math Problem appeared first on InvestorPlace.
(Bloomberg Opinion) -- Andreessen Horowitz is lauded today as one of the most influential and innovative firms in venture capital. But when it started a decade ago, the approach taken by co-founders Marc Andreessen and Ben Horowitz, this week's guest on Masters in Business, was derided as “crazy.” At the time, in the midst of the 2009 financial crisis, Horowitz was told “nobody needed yet another venture capital firm.” But they pushed ahead anyway. The result was firm that disrupted the Silicon Valley disruptors. Today, A16Z (as it is known) has $12 billion in assets under management across multiple funds. It was an early investor in startups such as Facebook, Airbnb, Lyft, Groupon, Twitter, Pinterest, Box and many more.Horowitz also credits the firm’s general partners, most of whom came of age in technology as founders, operators, chief executive officers or chief technology officers. He describes their experiences building successful companies as “crushingly hard,” and very much influencing the firm's thinking about startups. His latest book is “What You Do Is Who You Are: How to Create Your Business Culture.” His first book was “The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers.” His favorite books can be seen here; a transcript of the conversation is here.You can stream/download the full conversation, including the podcast extras on Apple iTunes, Overcast, Spotify, Google, Bloomberg and Stitcher. All of our earlier podcasts on your favorite pod hosts can be found here.Next week, we speak with Peter Mallouk, CEO of Creative Planning Inc., a $46 billion investment advisory firm, and author of "The 5 Mistakes Every Investor Makes and How to Avoid Them."To contact the author of this story: Barry Ritholtz at email@example.comTo contact the editor responsible for this story: James Greiff at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Amazon, Facebook and Alibaba, have not done well in Q4 of 2018 due to various reasons. Nevertheless, the data show elite investors' consensus picks have done well on average over the long-term. The top 20 stocks among hedge funds beat […]
Following President Donald Trump's recent declaration that he may wait to finalize a U.S.-China trade deal, stock markets are off to a volatile start in December. As investors wonder whether China-based stocks might be adversely affected by the president's statement for the rest of the month, this column will analyze the short- and long-term outlook of JD.com (NASDAQ:JD) stock, China's largest e-commerce company by revenue.Source: Michael Vi / Shutterstock.com In 2019, JD stock is up about 57%. Needless to say, JD.com has been hot this year, but in the short-run, the share price could drop due to profit-taking. JD.com's Q3 EarningsOn Nov. 15, JD.com released strong Q3 results, beating expectations from top to bottom. Its net revenue rose 29% year-over-year to $18.9 billion. Its earnings per share was 29 cents, versus analysts' average estimate of 17 cents.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIts income from operations was $695.8 million, compared to a loss from operations a year ago.JD.com's YoY user growth accelerated last quarter, while its mobile user count surged 36% YoY. * 7 Hot Stocks for 2020's Big Trends Its monthly active mobile users increased 36% YoY in September. The owners of JD stock cheered the results. JD.com has a robust business model and is poised to benefit from the expanding Chinese e-commerce market. The company has about a 25% share of the nation's online retail market.JD.com also has hundreds of warehouses and thousands of delivery stations as well as fresh food stores across China. JD Logistics' revenue grew over 75% YoY in Q3. JD.com claims that approximately 90% of the unit's orders are delivered the same day or the next day. JD.com's E-commerce Strength Will Propel JD Stock HigherIn addition to being one of China's most valuable enterprises, JD.com is a member of the Fortune Global 500.Online shopping represents about 35% of China's $5.5 trillion retail market. By comparison, e-commerce in the U.S. represents about 11% of the nation's total retail sales.According to recent research by the China Center for Economic Research, "the most popular products sold online at JD are cell phones, followed by food and beverages, makeup and cosmetics, digital products, and lifestyle and travel goods."Mobile device users are still a driving force of consumer spending. China has the most mobile users in the world. And the mobile market is expected to grow further as China's cellular infrastructure improves.Although China's economy may slow further in 2020, China's GDP is still expanding at an average annual rate of at least 6%. Over the longer term, China is likely to overtake the U.S. as the world's number one economy.China's unemployment rate dropped to an all-time low of 3.6% in 2019. And average wage increases have been high enough to improve consumer sentiment. In other words, the country's growing middle class will continue to drive increases in consumer spending and the expansion of China's e-commerce market.And when Chinese citizens have more money in their pockets, they can spend more on online shopping sites like JD.com, which has already become an internet juggernaut. Short-Term Headwinds for JD.comAlthough it is hard to quantify the exact effect of continued trade wars on JD.com, the uncertainty they create will likely make JD stock more volatile in the short-run.As the economy cools off, the owners of JD.com stock will also pay more attention to JD's competitors. JD's main competitor is Alibaba (NYSE:BABA), whose Tmall and Taobao platforms are China's largest online business-to-consumer and consumer-to-consumer marketplaces, respectively.In the past few years, new players have entered the internet commerce marketplace in China. One example is Pinduoduo (NASDAQ:PDD), a Groupon (NASDAQ:GRPN)-style retailer, which launched its IPO in 2018.One of the main criticisms of JD.com by analysts over the years has been JD stock's low margins. For example, throughout 2018, JD's revenue growth slowed and its operating margins dropped. If the Chinese economy slows further, JD's growth metrics could also slow. Additionally, more companies are likely to enter the lucrative, growing Chinese e-commerce sector.Finally, political instability in Hong Kong could also negatively affect JD.com. Analyzing the Movements of JD StockJD stock has been volatile over the years. It shot up from $20 in 2014 to $50 in early 2018. Then things went downhill. In Nov. 2018, JD.com hit $19.21.Throughout 2019, the shares have recovered as the company's quarterly profits and revenue growth have improved.On Nov. 15, 2019, JD.com stock hit a 52-week high of $35.43. Currently, the stock is hovering around $33.Because of the impressive jump of JD.com over the last year, its technical indicators have become somewhat over-extended.But if you already own JD stock, you might want to stay the course and hold onto your position. Or you may also consider opening a covered call position in conjunction with buying JD stock.If you do not currently own shares of JD.com, there will likely be opportunities to pick up the stock more cheaply.However, if the U.S. and China reach a trade deal soon, JD.com, along with many Chinese stocks, are likely to rally. The Bottom Line on JD.com StockAlthough JD stock has been a strong performer in 2019, its price is still considerably lower than its all-time highs of January 2018.Since JD.com stock is a growth name, it trades on forward sales as well as the momentum provided by future expectations. The markets are likely to continue to be choppy in the next few weeks, especially since investors may decide to take profits as the year ends.The volatility of JD stock is high, giving it a broad trading range, so short-term traders should be cautious about buying the shares in coming weeks.However, long-term investors shouldn't scramble for the exits just yet. JD stock and many of the other Chinese companies listed on U.S. exchanges enable investors to benefit from the growing spending of Chinese consumers.Because of the hugeness of the Chinese market, many Chinese e-commerce companies can thrive. And there are plenty of long-term catalysts that could drive JD.com higher in the years ahead.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post JD.com Stock May Be Volatile for the Rest of the Month appeared first on InvestorPlace.
Lolli, a plug-in that gives shoppers cash-back rewards in bitcoin, has added big names like Walmart, Macy's, Ulta, and Hilton. But that doesn't mean those companies are publicly supporting bitcoin.
Cyber Monday is touted to be the biggest U.S. e-commerce sales day in history. Online sales volumes are expected at around $9.4 billion, suggesting a 18.9% rise from the year-ago level.
Thanks to some holiday gifting advice from Groupon and Tiffany Haddish, you can now have it! Groupon is running a holiday ad campaign featuring Tiffany––called Rewrite the List––that urges people to start a new holiday tradition this year by adding at least one experience that they can do with others to their wish list. “What excites me the most about this Groupon campaign is that it speaks to a question we all face every year––what do we put on our holiday wish list," said Tiffany.
Shares of Groupon Inc. dropped 2.7% in premarket trading Wednesday, after the J.P. Morgan analyst Doug Anmuth turned bearish on the deal site, in the wake of third-quarter results, in which revenue fell more than expected. Anmuth cut his rating to underweight from neutral, while maintaining his $3.00 price target, saying he believes traffic and international macro pressures will continue to weigh on its business. "We are encouraged by [Groupon's] efforts around improving customer conversion, but believe it will still be very difficult to offset the significant external issues challenging the core business," Anmuth wrote in a note to clients. The stock has gained 6.4% over the past three months but has lost 6.3% year to date, while the S&P 500 has advanced 6.7% the past three months and soared 22.7% this year.
Groupon's (GRPN) partnership with Grubhub and ParkWhiz along with ongoing brand awareness programs will aid revenues. Further, launching new products on a regular basis is a positive.
Groupon (GRPN) delivered earnings and revenue surprises of -50.00% and -5.56%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Groupon Inc. shares sunk more than 10% in the extended session Monday after the company missed analyst revenue projections. The company reported a third-quarter net loss of $16.7 million, or 3 cents a share, compared with net income of $44.6 million, or 8 cents a share, in the year-ago period. Adjusted for items such as stock-based compensation, among other things, earnings were a penny a share. Revenue fell to $495.6 million from $592.9 million in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of 2 cents a share on revenue of $524 million. For the fourth quarter, analysts estimate adjusted earnings of 15 cents a share on sales of $744 million. Groupon stock has fallen 6.3% this year, with the S&P 500 index rising 22%.
Groupon Inc (NASDAQ: GRPN ) shares are falling after reporting a third-quarter earnings and sales miss. Adjusted earnings came in at 1 cent per share, missing estimates by 2 cents. Sales came in at $495.7 ...
Groupon (NASDAQ: GRPN ) releases its next round of earnings this Monday, November 4. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report. Earnings and Revenue Groupon ...
Groupon (www.groupon.com) (GRPN), which has pumped more than $20 billion into local communities, today announced the launch of Discover Hyde Park––a community-wide Groupon campaign designed to attract the attention of all Chicagoans to the amazing cross section of small businesses in Chicago’s Hyde Park neighborhood. Through a joint effort with the South East Chicago Commission and Downtown Hyde Park Chicago, Discover Hyde Park features some of the neighborhood’s top experiences, including things to do, mouth-watering eats and more.