3.34 -0.02 (-0.60%)
After hours: 5:51PM EST
|Bid||3.33 x 900|
|Ask||3.37 x 40000|
|Day's Range||3.3100 - 3.4100|
|52 Week Range||2.8000 - 5.5200|
|Beta (3Y Monthly)||0.99|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 12, 2019 - Feb 18, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||3.88|
There is a relatively new beast in the region that has been dubbed a minotaur. It is a venture-backed company that has raised $1 billion or more in venture funding.
Groupon (NASDAQ:GRPN) served up the "disaster du jour" to investors Feb. 13, falling almost 14% in early trade after earnings that angered analysts. The GRPN stock one-day fall erased most of its gains for 2019, a year that'd been expected to produce better results.Source: Shutterstock Net income of $46.2 million, or 8 cents per share, on revenue of $800 million was not nearly good enough for Groupon stock with a consensus forecast for a 13-cent per share profit.Fool me once, shame on me. Fool me twice, won't get fooled again, as the Bush II-era saying goes.InvestorPlace - Stock Market News, Stock Advice & Trading Tips New Groupon?With 570 million shares outstanding and a market cap of $1.93 billion, Groupon stock looks cheap. But looks can be deceiving.Shares have been trading in a range from $6 to $3 each for years. The late-year tech wreck sent GRPN stock to the bottom of that range in December, but it had been recovering through 2019. Results sent the shares down to test the lows again. * 7 Financial Stocks With Accelerating Growth The problem is that analysts have seen this movie before. Groupon traded as high as $26 per share right after its 2012 initial public offering. It was still trading at $12.60 at one point in 2013. Then its "daily deals" business model, in which merchants offer coupons redeemable for a great price if enough consumers sign on through an e-mail blast, grew stale.With the shares down to the $3 range in late 2015, Amazon.com (NASDAQ:AMZN) alum Rich Williams was promoted to replace founder Eric Lefkofsky as CEO.Williams streamlined the business, cutting headcount and international expansion. He even drew a $250 million investment from a venture fund backed by Comcast (NASDAQ:CMCSA).In 2017 Williams rolled out Groupon+ , which linked consumer accounts to their credit cards through an app, eliminating paper vouchers. This also made offers easier to transmit, to a more-willing audience.Williams started drawing admiring stories about the company becoming a "modern day loyalty program" again.But growth hasn't followed. The fourth quarter of 2018 was the 12th in a row where the company reported lower revenue and less customer traffic. Williams' release on the numbers talked about a "challenging operating environment" -- always a red flag -- promising "bolder bets" in 2019, like a partnership with AMC to sell movie tickets. * 9 U.S. Stocks That Are Coming to Life Again Even TV analyst Jim Cramer, who had Williams on his show in December, acknowledged recently he had been wrong on Groupon.That turns out to have been the right call. The Copycat ExceedsGroupon has also fallen behind Pinduoduo (NASDAQ:PDD), a 2015 Chinese start-up backed by Tencent Holdings (OTCMKTS:TCEHY) that already has a market cap of $29 billion, 15 times that of Groupon.Pinduoduo's business model is like Groupon on steroids. While Groupon deals are initiated by businesses, as a form of advertising, Pinduoduo deals are initiated by consumers. They choose what they want to get, then look for friends and family who will join them in buying it.However, Pinduoduo may quickly follow Groupon into the bargain bin. Its shares fell sharply after the IPO lock-up period expired and a hack of its system unleashed a torrent of free coupons. Bottom Line on Groupon StockThis should be a great week for Groupon. Valentine's Day often brings a flood of opportunities for two-for-one deals.But analysts have been burned on GRPN stock. It's doubtful many will be going in again unless Groupon can deliver what it hasn't been able to deliver so far under Williams: top-line growth.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Leading the Market's Blitz Higher * 7 Strong Buy Stocks With Over 20% Upside * 5 Growthy Stocks Trading Below 15X Earnings Compare Brokers The post Groupon Stock Investors Mull Results: Disaster or Just Disappointment? appeared first on InvestorPlace.
Groupon (NASDAQ:GRPN) stock slid sharply last Wednesday after the online-discounts platform reported fourth-quarter numbers that didn't quite live up to expectations. Management also provided downbeat 2019 profitability guidance. In response, Groupon stock dropped more than 10%.This sharp drop of Groupon stock is warranted. Broadly speaking, Groupon's turnaround is progressing, but at a much slower pace than anticipated, and at a much slower pace than had previously been reflected by Groupon stock. As a result, the near-to-medium term upside of GRPN stock is capped by an unfavorable convergence of slowing growth and the stretched valuation of the shares.Groupon can survive over the long-term as an online-discounts platform, and it can drive sustainable growth by emphasizing local activities. That strategy should power Groupon stock to prices well over $5 in the long- run.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Financial Stocks With Accelerating Growth But it will take time for GRPN stock to reach $5 again, and its potential return isn't all that attractive at this point. Overall, that means investors should wait for the stock to fall further before buying GRPN stock on weakness. Groupon Has Staying PowerThere are plenty of bears out there who think that Groupon's time has come and gone, and that the commerce world of tomorrow has no need for an online-discounts platform.I don't think that's true. Sure, Groupon's customer base isn't growing. But it's not dropping by a material amount, either, and e-commerce giants like Amazon (NASDAQ:AMZN) and Walmart (NYSE:WMT) are already aggressively discounting everything. Thus, it seems that loyal Groupon users will remain loyal Groupon users, regardless of how much large retailers reduce their prices. Consequently, GRPN will likely survive over the long-run.But Groupon also has growth potential. We are shifting to a society in which consumers value experiences over products. Experiences aren't sold by Amazon or Walmart. But Groupon offers discounts on experiences through its platform, meaning that the company is perfectly aligned with the experience mega-trend.Over the next several years, GRPN needs to double down on local experiences and provide more discounts on experiences that can't be purchased through Walmart or Amazon. If the company successfully executes this strategy, its customer base could start to grow again. Furthermore, embracing voucherless transactions and improving the experience of customers who use mobile devices could also reinvigorate the platform's growth.Overall, Groupon is positioned for a nice turnaround over the next several years. Fourth-Quarter Numbers Underscore the Slowness of the TurnaroundAlthough GRPN has turnaround potential, its fourth-quarter numbers imply that its turnaround will progress at a snail's pace.The company's Q4 gross billings and revenue dropped by high-single digit percentage levels year-over-year, continuing a multi-quarter streak of high-single-digit drops in both of those categories. For the third consecutive quarter, the number of Groupon's active customers dropped slightly versus the previous quarter.Groupon's margins are improving, but its margins increased by the slowest pace pf any quarter in 2018. Meanwhile, its guidance calls for its adjusted EBITDA to be roughly flat YoY in 2019. That implies some combination of continuing revenue declines and decelerating margin expansion.In sum, the numbers weren't great. But, as outlined earlier, there is potential for the numbers to turn around over the next few years as the company doubles down on experiences, goes voucherless, and improves its mobile interface. Still, such improvements will take time, and they will generate a small financial boost.Over the next few years, however, Groupon's revenue losses will stabilize. By emphasizing experiences, GRPN will be able to slightly grow its customer base and its revenue. As a result, its gross and operating margins should trend slightly higher due to the combination of cost-saving measures and steady top-line growth, enabling its profits to increase slowly and steadily.All in all, by fiscal 2025, I think Groupon's earnings per share can reach 40 cents. Applying the market's average forward multiple of 16, that implies a fiscal 2024 price target for Groupon stock of over $6. Discounted back by 10% per year, that equates to a 2019 price target of under $4. That is where GRPN stock trades today, so its upside over the next several months seems limited. The Bottom Line on GRPN StockGroupon's turnaround is still happening. It's just happening at a much slower pace than anticipated. As a result, Groupon stock is resetting due to slower growth assumptions. That adjustment will ultimately keep Groupon stock stuck in neutral for the next few months.As of this writing, Luke Lango was long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Leading the Market's Blitz Higher * 7 Strong Buy Stocks With Over 20% Upside * 5 Growthy Stocks Trading Below 15X Earnings Compare Brokers The post Slow Turnaround Means Limited Upside for Groupon Stock appeared first on InvestorPlace.
Shares of Groupon (NASDAQ:GRPN) were hammered on Wednesday after the company missed earnings estimates. Though batters, GRPN stock closed well off its lows and except for a slight further dip on Thursday, it continued to hold up as the week ended.Source: Shutterstock That's got some investors wondering if the earnings-related selloff was an overreaction and if GRPN is actually a buying opportunity at almost 37% off its 52-week high.Non-GAAP earnings of 10 cents per share missed estimates of 13 cents a share, while GAAP earnings of 8 cents per share missed estimates by 2 pennies. Revenue of roughly $800 million did beat analyst estimates by ~$16.5 million, but fell 8.4% year-over-year (YoY).InvestorPlace - Stock Market News, Stock Advice & Trading TipsGross margins fell short of expectations and full-year EBITDA guidance of $270 million came up short of the ~$301 million consensus. All said, it's no wonder Groupon stock took a beating after the report. Earnings missed, revenue decreased YoY (although that was expected) while guidance disappointed. * 10 Hot Stocks Leading the Market's Blitz Higher The only silver lining is that GRPN stock didn't close dead on the lows. Sizing Up Groupon StockOverall, though, there are some positives. For instance, Groupon has a surprisingly large amount of cash, with more than $840 million in the bank. Further, while the company just came up short on the bottom line, it's at least encouraging that GRPN stock is profitable.The company earned 18 cents per share in fiscal 2018, which was up more than 63% from the prior year. That said, estimates for 2019 only call for earnings of 25 cents per share -- and those estimates will surely come under pressure after these latest results and guidance. Revenue growth is expected to be about flat in fiscal 2019, but it's at least better than the ~7% revenue decline in 2018.So what do we have with all of this? Frankly, it's hard to be super bullish on Groupon at this point. On the plus side though, revenue growth is improving, as is the deal-offers site's profitability. Plus, it has plenty of money in the bank and is free cash flow positive. Trading GRPN Stock Click to EnlargeTo be sure, that's not the most bullish case in the world. The fact is, if Groupon was firing on all cylinders, it either would have been acquired or would be trading for more than $3.60. But that's exactly where we have the stock after the company reported earnings. With a two-day rally into earnings, GRPN stock was showing signs of life ahead of its Q4 report. That life was quickly stomped out after the report. * 9 U.S. Stocks That Are Coming to Life Again It seems all we can find with this name is a series of silver linings. In the case of the fundamentals, it's things like "flat growth, but better than last year," or "at least Groupon's profitable, although growth is slowing notably." On the charts, we have another silver lining. Shares were pummeled post-earnings, but the 100-day and 50-day moving averages held up as support.I'm not feeling the bullish conviction with Groupon stock, but for those who are, use these levels as your clues. Below these moving averages, GRPN stock is in trouble. Below the earnings-news low, shares will be in no man's land.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal Compare Brokers The post Is Groupon Stock a Buy or Sell After Last Week's Earnings Miss? appeared first on InvestorPlace.
Key Updates from Amazon, eBay, and Alibaba(Continued from Prior Part)eBay initiates quarterly dividend eBay (EBAY) is planning to pay $0.14 per share in dividends to its shareholders in March, which will mark eBay’s first-ever dividend payment. The
Key Updates from Amazon, eBay, and Alibaba(Continued from Prior Part)CounterfeitingCounterfeiting has made it to Amazon’s (AMZN) list of risk factors that are worth bringing to the attention of regulators. In its 2018 annual regulatory filing,
Groupon Inc (NASDAQ: GRPN ) stock took a hit this week after the company reported weaker-than-expected fourth-quarter earnings and guided for flat profit growth in 2019. Groupon reported EPS of 10 cents, ...
NEW YORK, Feb. 14, 2019 -- In new independent research reports released early this morning, Market Source Research released its latest key findings for all current investors,.
Groupon (GRPN) hurt by lower customer traffic. However, investments in scaling Groupon+ and maximization of long-term gross profit are a positive.
All three major U.S. stock indexes gained ground, with the S&P 500 and the Nasdaq posting their fourth consecutive advances. For the second straight day, the S&P 500 closed above its 200-day moving average, a key technical level.
All three major U.S. stock indexes were up, and the S&P 500 held above its 200-day moving average, a key technical level. "The market is ahead of itself until we get a deal with China," said Matthew Keator, partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. Fourth-quarter earnings season approaches the finish line, with more than two-thirds of S&P 500 having reported.
Stocks that moved substantially or traded heavily on Wednesday: Activision Blizzard Inc., up $2.90 to $44.57 The video game maker is restructuring and laying off nearly 800 workers as it faces tougher ...
Shares of the ATM maker surged 39 percent after reporting a better-than-expected quarterly revenue and upbeat guidance for 2019. Diebold expects adjusted earnings before interest, taxes, appreciation and amortization to range between $380 million and $420 million, well above a FactSet estimate of $339.8 million. Freeport-McMoRan FCX — Freeport-McMoRan's stock jumped 6.96 percent after an analyst at Morgan Stanley upgraded it, noting the company will get a boost from higher copper prices.
shares traded sharply lower Wednesday after the online marketplace posted weaker-than-expected fourth quarter earnings, including three consecutive years of revenue declines, and forecast flat profit guidance for 2019. Groupon said non-GAAP earnings for the three months ending in December came in at 10 cents per share, up nearly 43% from the same period last year but 3 cents shy of the Street consensus forecast. Group revenues, Groupon said, fell 8% to $799.9 million, the twelfth consecutive quarterly decline amid declining customer traffic.
Groupon earnings (NASDAQ:GRPN) were unveiled late in the day on Tuesday, sending GRPN stock sinking after hours as the company's adjusted profit came in 3 cents per share below what the Wall Street consensus estimate called for, while its revenue fell year-over-year.The Chicago, Ill.-based online coupon provider said that for its fourth quarter of its fiscal 2018, it posted net income of $46.2 million, or 8 cents per share. The figure was 3.1% below the $47.7 million, or 8 cents per share that the company brought in during its fourth quarter of its fiscal 2017.Groupon added that for the period, it posted adjusted profit of $60 million, or 10 cents per share, marking a 43.9% increase when compared to the $41.7 million, or 7 cents per share from the year-ago quarter. Analysts were calling for the company to bring in adjusted earnings of 13 cents per share, according to a guidance compiled from a FactSet survey.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company also posted revenue of $799.9 million for the period, marking an 8% decline compared to the year-ago quarter due to "lower customer traffic and our continued focus on revenue generation that maximizes long-term gross profit," according to its earnings report. Wall Street called for revenue of $783 million, per FactSet.GRPN stock was gaining about 5.6% during regular trading hours as the company geared up to report for its latest quarter of its fiscal 2018. Shares then fell roughly 12.4% after the bell as the company's earnings were below what Wall Street was calling for, although revenue did come in ahead of the mark. More From InvestorPlace * 10 Best Dividend Stocks to Buy for the Next 10 Months * 7 Reasons You Want Boeing Stock in Your Portfolio * Buy These 5 Stocks to Play the Megatrend of the Century Compare Brokers The post Groupon Earnings: GRPN Stock Plummets on Weak Q4 Earnings appeared first on InvestorPlace.
On a per-share basis, the Chicago-based company said it had profit of 8 cents. Earnings, adjusted for stock option expense and non-recurring costs, came to 10 cents per share. The results missed Wall Street ...
Groupon Inc. shares fell 14% in the extended session Tuesday after the Chicago-based company missed fourth-quarter profit expectations. Groupon said it earned $46.2 million, or 8 cents a share, in the quarter, compared with $47.7 million, or 8 cents a share, in the fourth quarter of 2017. Adjusted for one-time items, Groupon earned $60.0 million, or 10 cents a share, compared with $41.7 million, or 7 cents a share, a year ago. Revenue fell 8% to $799.9 million, which the company pinned on "lower customer traffic and our continued focus on revenue generation that maximizes long-term gross profit." Analysts polled by FactSet had expected Groupon to earn an adjusted profit of 13 cents a share on sales of $783 million. Groupon shares ended the regular trading day up 5.6%. "Despite a challenging operating environment, I'm pleased with the progress we made on our strategic initiatives," Groupon Chief Executive Rich Williams said in a statement.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Rich Williams became the CEO of Groupon,Read More...