GRPN - Groupon, Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
+0.0500 (+1.47%)
At close: 4:00PM EDT

3.4777 +0.03 (0.80%)
After hours: 5:55PM EDT

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Previous Close3.4000
Bid3.4300 x 38500
Ask3.5700 x 47300
Day's Range3.3900 - 3.4800
52 Week Range2.8000 - 5.5200
Avg. Volume5,535,698
Market Cap1.968B
Beta (3Y Monthly)1.60
PE Ratio (TTM)N/A
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target EstN/A
Trade prices are not sourced from all markets
  • Why Groupon Stock Can’t Quite Deliver
    InvestorPlace11 hours ago

    Why Groupon Stock Can’t Quite Deliver

    In some ways, Groupon (NASDAQ:GRPN) looks like an attractive stock. Groupon stock is reasonably cheap based on both EBITDA and free cash flow.Source: Shutterstock There's some potential for GRPN to be acquired at some point. If Groupon could just consistently grow, GRPN stock likely would climb above $3.50. * 10 High-Yielding Dividend Stocks That Won't Wilt It's that "if" that's the big problem, however. Since Groupon stock crashed soon after its 2011 IPO amid accounting concerns, the potential has always been there.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIndeed, in 2017, as I wrote last year, GRPN made some progress. In 2018, it hit its original guidance for the year. And yet GRPN stock hit another multi-year low in December, and stumbled again after it reported its Q4 results and provided 2019 guidance back in February.At these levels, Groupon stock looks somewhat intriguing, even to a longtime skeptic like myself. There are scenarios under which GRPN stock can rally. But that path has been open for years now, and GRPN simply can't seem to get there. Why Groupon Stock Looks IntriguingWhat is different about Groupon stock now versus a few years ago is that the stock now looks reasonably cheap. Cost-cutting in 2017 raised GRPN's margins. Its profit rose last year, as its adjusted EBITDA increased 8%, and its adjusted EPS climbed from $0.11 to $0.18, albeit with some help from corporate tax reform.As a result, the valuation of Groupon stock looks fairly reasonable. It trades at about 19 times its 2018 EPS, and its guidance indicates that its profits will be roughly similar this year. Free cash flow last year, excluding a settlement payment to IBM (NYSE:IBM), was $163 million. According to GRPN, that figure should be roughly similar in 2019. At that level, the price-free cash flow ratio of GRPN stock will be about 12.It's true that the company's 2019 guidance was disappointing, and that's a key reason why Groupon stock fell 11% after the company released its Q4 results. But management cited a target of $300 million of EBITDA in 2020, which would entail an increase of 10%+. If GRPN attains that goal, its enterprise value-EBITDA ratio would be below seven.Those multiples are cheap in general, and they're enormously cheap, considering the valuations of other, similar internet-platform stocks. ANGI Homeservices (NASDAQ:ANGI) trades at something like 25 times its 2019 EBITDA. Match Group (NASDAQ:MTCH) is trading at about 30 times its 2019 free cash flow and something like 20 times its EBITDA. GrubHub (NYSE:GRUB) and Yelp (NASDAQ:YELP) trade at elevated levels as well.Groupon stock doesn't deserve those multiples. But at least, renewed investor confidence in GRPN could cause the current multiples of Groupon stock to expand. Higher multiples and higher growth can combine to sharply raise the price of GRPN stock.But that's been the case for years now. Even when the company's profits were lower, bulls asked, "what if GRPN just traded at one times its sales?"Acquisition rumors have swirled constantly over that stretch as well. They continue to do so. GRPN Stock's CatchAnd yet…it's 2019 and GRPN is back trading in the mid-$3s. It hasn't been able to grow, as its revenue has declined for 12 straight quarters. Some of the pressure on Groupon's revenue in past years has came from the company pulling back in certain international markets and de-emphasizing Groupon Goods. But even management after Q4 admitted that the company's performance in the second half of 2018 was disappointing.An acquisition of GRPN could make some sense, but where are the buyers? Why, exactly, would anyone pull the trigger in 2019 or 2020 when the opportunity has been present for some time?The same issue is true of the company's 2020 guidance. Management is arguing that investments made this year will drive growth next year. Yet, except for the progress that the company made in 2017, GRPN feels like it's been a "next year" story for about six years now. What's different now? And how, exactly, are the company's profits supposed to rise by double-digit percentage levels when its billings and revenue are falling?Groupon lost some 2 million active users in North America in 2018 alone, according to its Q4 results. (I believe I'm one of the 2.1 million.) Its products simply aren't relevant enough to consumers. GRPN's ProblemAt the end of the day, the company's problem is relatively simple, and it's the same as it's been for some time. Specifically, it's not clear that Groupon's business model really works. Consumers like discounts,, but the quality of merchants on Groupon simply isn't good enough to keep driving growth.Meanwhile, the company's model isn't really a "tech" model. GRPN still has well over 2,000 salespeople. Business runs through the company's website and, increasingly, its app. But, at its core, GRPN has a labor-intensive model that doesn't grow well. And it's a model that relies on outside help: Groupon's own 10-K cites headwinds from Google's changes to its search algorithm and its development of the "promotions" tab in Gmail, which has hurt the response to Groupon's emails.Groupon stock does seem to have some value, given its profitability and positive free cash flow. That's why GRPN stock is tempting, particularly at its low price.But the qualitative concerns about GRPN have been going on for so long that it's difficult to ignore them. It's in a really, really tough business. And unless Groupon can either drive consistent growth or find a "white knight" acquirer, it's hard to see how the next few years will look much different from the last few.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Yielding Dividend Stocks That Won't Wilt * 4 Energy Stocks Soaring as Trump Tightens on Iran * 7 Tech Stocks With Too Much Risk, Not Enough Upside Compare Brokers The post Why Groupon Stock Can't Quite Deliver appeared first on InvestorPlace.

  • Groupon (GRPN) Expected to Beat Earnings Estimates: What to Know Ahead of Q1 Release
    Zacks13 hours ago

    Groupon (GRPN) Expected to Beat Earnings Estimates: What to Know Ahead of Q1 Release

    Groupon (GRPN) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • What’s Expected to Drive Groupon Stock Higher?
    Market Realist9 days ago

    What’s Expected to Drive Groupon Stock Higher?

    Is Groupon a Big Risk or a Value Pick at Its Current Price?(Continued from Prior Part)Turnaround efforts Groupon (GRPN) has been in the middle of a turnaround over the last few years. The last year was extremely critical and challenging for Groupon.

  • Seriously, Uber May Never Actually Turn a Profit
    InvestorPlace9 days ago

    Seriously, Uber May Never Actually Turn a Profit

    Not to be outdone by its now-publicly-traded rival Lyft (NASDAQ:LYFT), this past week Uber submitted its initial public offering paperwork to the SEC. The long-awaited and oft-discussed Uber IPO is finally about to happen. * 10 Stocks That Are Screaming Buys Right Now Source: Shutterstock A bunch of traders are buzzing because… well, many traders love cool concepts. At the other end of the spectrum, naysayers can't get past the line in the official filing that says the company "may not achieve profitability."It's a dire suggestion, but it's not the red flag many investors are making it out to be.Most companies that aren't profitable at the time of their IPO warn in their S1 paperwork they may never turn a profit. Twitter (NYSE:TWTR), for instance, cautioned investors in 2013 in its S1 filing it "may not be able to achieve or subsequently maintain profitability."InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut it's making money now.In 2003, (NYSE:CRM) was worried enough to issue this warning to would-be IPO buyers: "If our revenue does not grow to offset these expected increased expenses, we will not continue to be profitable."Salesforce has earned $1.11 billion over the course of the past four reported quarters.It's boilerplate language.Still, investors would be wise to be wary of the Uber IPO because it may not actually ever turn a sustained profit, even if the warning in its recent paperwork was just the usual rubber-stamped disclaimer. The PlanWhether or not Uber said so, there's a very real possibility the company may never create sustained profits.Uber, of course, is a ride-hailing company. Tech-centered and volume-minded, the organization was founded in 2009, with relatively humble beginnings. Travis Kalanick had sold Red Swoosh just a couple years prior, freeing him to partner up with computer programmer Garrett Camp to create what was then called UberCab.The app itself was and still is the centerpiece of the company's operation, which has since cultivated an army of roughly 3 million independently-contracted drivers.It's clever competition to conventional taxi cab companies. Those 3 million drivers all work remotely, and independently, and are dispatched by the same platform that powers the consumer-facing app. It's arguably more efficient than traditional taxi companies.That doesn't make it profitable, though.It's complicated, but the short explanation of the concern is this: Uber spends more on regular, recurring operating costs than it collects in net-revenues.That may not always be the case. In fact, Uber specifically believes that won't be the case in the foreseeable future. The plan is to grow ride-hailing revenue to the point where they finally exceed fixed, unavoidable costs. Higher fares aren't likely to be a component of that improvement, as it faces off with Lyft and other, more localized players. Paying its drivers less isn't a great option either. The plan is to grow the number of rides it facilitates.Even that, however, may not get the company over the hump. Scale Isn't Necessarily the KeyMany observers have laid out the flawed thinking in Uber's growth plan. But, giving credit where it's due, it's Intelligencer's Yves Smith that makes the most cogent case against buying into the Uber IPO. He penned the following late last year:"Uber is a taxi company with an app attached. It bears almost no resemblance to internet superstars it claims to emulate. The app is not technically daunting and does not create a competitive barrier, as witnessed by the fact that many other players have copied it… [apps] do not create network effects. Unlike Facebook or eBay, having more Uber users does not improve the service."Smith adds a subtle but important detail the matter, noting "More drivers means more competition for available jobs, which means less utilization per driver. There is a trade-off between capacity and utilization in a transportation system, which you do not see in digital networks."In short, an Uber swing to profitability assumes that the ride-hailing market (however they're hailed) is not yet mature, and further assumes that competitors won't win any market share if the market does somehow expand.And the fact that Uber drivers feel they're being forced to break the law as well as being forced to cancel rides when fares are too low suggests the supply-demand dynamic has already run out of runway. Bottom Line on Uber IPODon't misread the message: The Uber IPO may prove amazingly fruitful for traders able to actually buy into the initial public offering and offload their Uber stock at a much better price in the open market. Although it didn't work for Lyft this way, Uber shares may ride the post-IPO buzz higher and higher. Euphoria is a powerful force.Sooner or later, though, Uber has to realistically prove to investors that it may be able to turn a decent profit at some point in the future. The company's top brass continue to tacitly hint that it can, but consider the source. The more convinced investors are that Uber will be viable one day, the more money those insiders make on the shares they already own.Notice, in particular, that Uber has yet to offer any solid growth outlook that's based on verifiable, validated data that jibes with the market's growth expectations.Never say never, but this smells a lot like another Groupon (NASDAQ:GRPN) or Spotify (NYSE:SPOT). Consumers love their products, but the companies aren't actually "businesses" with a model capable of consistently producing earnings. * 10 Dow Jones Stocks Holding the Blue Chip Index Back To that end, there's a reason LYFT stock is down 16% from its IPO price in just a few days.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site,, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post Seriously, Uber May Never Actually Turn a Profit appeared first on InvestorPlace.

  • What to Expect from Groupon’s Revenue and Earnings Growth
    Market Realist11 days ago

    What to Expect from Groupon’s Revenue and Earnings Growth

    Is Groupon a Big Risk or a Value Pick at Its Current Price?(Continued from Prior Part)Groupon’s sales are expected to rise 8.2% in 2019Groupon’s (GRPN) sales have been falling over the last few years, as the company has exited unprofitable

  • What Do Analysts Expect from Groupon?
    Market Realist12 days ago

    What Do Analysts Expect from Groupon?

    Is Groupon a Big Risk or a Value Pick at Its Current Price?(Continued from Prior Part)Groupon’s revenue is expected to fall 11.8% in the first quarter Groupon (GRPN) is set to announce its first-quarter earnings results on May 8, 2019. Analysts

  • Groupon Stock Is Up Over 11% in 2019
    Market Realist12 days ago

    Groupon Stock Is Up Over 11% in 2019

    Is Groupon a Big Risk or a Value Pick at Its Current Price?Stock returns Groupon (GRPN) stock has slumped by close to 84% since its IPO way back in November 2011. Over the years, Groupon has exited unprofitable international markets and continued

  • What Is Groupon, Inc.'s (NASDAQ:GRPN) Share Price Doing?
    Simply Wall St.12 days ago

    What Is Groupon, Inc.'s (NASDAQ:GRPN) Share Price Doing?

    Groupon, Inc. (NASDAQ:GRPN), which is in the online retail business, and is based in United States, saw a decent share price growth in the teens level on the NASDAQGS over the last few months...

  • Why Groupon Wants to Maintain a Smaller Creative Team
    Market Realist14 days ago

    Why Groupon Wants to Maintain a Smaller Creative Team

    Here's What's New with BABA, JD, GRPN, and SHOP(Continued from Prior Part)Layoffs tied to shift in marketplace model Groupon (GRPN) laid off some employees in its creative services team last month. The company eliminated ~20 jobs from the team,

  • How eBay Will Use AI to Drive Marketplace Sales
    Market Realist14 days ago

    How eBay Will Use AI to Drive Marketplace Sales

    The Latest Updates from Amazon and eBay(Continued from Prior Part)eBay wants to help customers discover favorite productseBay (EBAY) wants to stimulate growth in its most important division, its marketplace. In addition to discontinuing its

  • Groupon hits 200 million app downloads
    American City Business Journals14 days ago

    Groupon hits 200 million app downloads

    In the early days of Groupon, email was king. The daily deals site used email to offer users discounts to local businesses in a way few e-commerce companies had done before, which helped it (at the time) become the fastest growing startup ever to reach a $1 billion valuation. Groupon announced Monday that it has reached 200 million app downloads across iOS and Android.

  • Why Luxury Brands Are Choosing Alibaba over Amazon
    Market Realist14 days ago

    Why Luxury Brands Are Choosing Alibaba over Amazon

    Here's What's New with BABA, JD, GRPN, and SHOP(Continued from Prior Part)China presents huge growth potential In the race to grow their online presences in response to the shift in consumer shopping trends, global luxury brands are choosing to work

  • Markit14 days ago

    See what the IHS Markit Score report has to say about Groupon Inc.

    Groupon Inc NASDAQ/NGS:GRPNView full report here! Summary * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is low for GRPN with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding GRPN are favorable with net inflows of $114.31 billion. This was the highest net inflow seen over the last one-year.Error parsing the SmartText Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is strong relative to the trend shown over the past year, and is accelerating. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

  • American City Business Journals20 days ago

    Lyft, Nio top a list of cash guzzlers that has been a bad portent for others

    All but one of the companies that went public with the biggest operating losses are either trading below their offering price, bankrupt or were sold below their IPO price, according to a report this week.

  • 4 Penny Stocks to Own for 2019
    InvestorPlace21 days ago

    4 Penny Stocks to Own for 2019

    [Editor's note: This story was previously published in May 2018. It has since been updated and republished.]Do you think penny stocks are best left to amateur traders who don't understand that cheap stocks are cheap for a reason? It's not an entirely unfair assessment. Many of these young (and doomed) companies are the beneficiaries of great sales pitches, but their investors often end up suffering buyer's remorse.It's a misnomer, however, to think that all penny stocks -- let's quantify them as equities priced at less than $5 per share -- aren't worth owning. Thanks to factors ranging from prolonged weakness in the commodities market to strategic stock splits to poorly-timed IPOs, a handful of these low-priced equities are actually compelling prospects.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Stocks to Buy Leading the Financial Charge Here's a run-down of four of the best penny stocks to mull for 2019, and maybe beyond. All of these names are listed on exchanges. AK Steel Holding Corporation (AKS)One would think the steel business is steady and predictable, with these stocks (and steel prices) ebbing and flowing more or less with the macro economic cycle. That conclusaion isn't correct, however.The steel industry is a volatile mess, with ever-changing supply and demand making it impossible for the likes of AK Steel Holding Corporation (NYSE:AKS) to commit to a plan for the future.As a result, AKS stock has basically gone nowhere for the past 15 years, with everything that could go wrong during that time for AKS going wrong at an inopportune time.That may finally be on the verge of changing, however. With President Trump at least willing to try to level the playing field between the United States' steel companies and overseas rivals at the same time the global economy appears to be picking up some steam, AK Steel is in a proverbial sweet spot. PDL BioPharma Inc (PDLI)PDL BioPharma (NASDAQ:PDLI) is a curious beast. It was initially established as a vehicle to acquire the rights to, or patents on, highly marketable drugs that would ultimately drive income for its investors.It worked too, for a while. As time marched on, however, drug developers realized they could do for themselves what PDL was doing. Ergo, PDL BioPharma has been struggling for a while now to acquire drugs and marketing rights at prices that left room for healthy dividends.That's a big part of the reason PDLI stock has fallen from a value of more than $30 in 2006 to a price of only $3.77 per share now. * 15 Stocks to Buy Leading the Financial Charge Groupon Inc (GRPN)Talk about a fall from grace! Groupon (NASDAQ:GRPN) was a market darling when it went public back in 2011, at a price of $28 per share. It had a honeymoon that didn't last long at all though, with shares retreating into penny-stock territory less than a year later, where it's been stuck ever since.And truth be told, Groupon stock deserved the beating it took. Not only was its pre-IPO growth rate not built to last, but a host of competition has stepped up to the plate in the meantime. Its net income peaked in 2012, and its sales peaked in 2015.The daily-deals company may have finally found a winning formula though, setting the stage for improvement in 2019 and beyond.Analysts say that while sales are apt to fall this year, its EPS should rise. That may be all traders need to see to get this stock back in a nice uptrend. Zynga Inc (ZNGA) Note: Zynga stock has risen slightly above $5 since this column was first published.Last but not least, put Zynga (NASDAQ:ZNGA) on your list of penny stocks to mull for 2019. Yes, this is the same Zynga behind great online games like Words With Friends, FarmVille and several other titles you may not have realized were part of its library.This is the same Zynga that Facebook dropped an exclusivity arrangement with back in 2012, undermining its well-received IPO from 2011 and sending the stock to a sub-$5 price where it's been almost ever since. Though Zynga hasn't done poorly, it's certainly not done nearly as well as investors were expecting it to when it first IPO'd. * 15 Stocks to Buy Leading the Financial Charge Change is brewing though. In 2017, CEO and founder Mark Pincus gave up his control of the company by scrapping the two classes of voting shares that granted him an inordinate degree of voting power.That's not to say he alone was the reason the company was unable to grow in a meaningful way, but it certainly didn't help. In the meantime, its revenue and income are expected to edge higher this year, anyway.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks From Around the World That Beat U.S. Stocks * 7 Breakout Stocks to Watch in 2019 * 5 Cheap Small-Cap Stocks to Buy Compare Brokers The post 4 Penny Stocks to Own for 2019 appeared first on InvestorPlace.

  • Alibaba Wraps Up Dispute over Alibabacoin Trademark
    Market Realist23 days ago

    Alibaba Wraps Up Dispute over Alibabacoin Trademark

    Alibaba Continues to Pursue Growth(Continued from Prior Part)Alibaba takes Alibabacoin trademark Alibaba (BABA) has taken over the Alibabacoin trademark from a Dubai firm that it had accused of brand squatting. In April 2018, Alibaba sued Dubai-based

  • Penny Stocks to Watch for April 2019
    Investopedia24 days ago

    Penny Stocks to Watch for April 2019

    This month's penny stock winners will be the ones that will do well due to, and often in spite of, a quickly fatiguing market.

  • Did Twitter Pass Up a Chance to Avoid BlackBerry Litigation?
    Market Realist28 days ago

    Did Twitter Pass Up a Chance to Avoid BlackBerry Litigation?

    Inside Twitter’s Latest Battles, Big and SmallBlackBerry claims Twitter refused to settle out of court BlackBerry (BB) sued Twitter (TWTR) last month in a patent infringement dispute. In the suit, which was filed in a federal court in Los Angeles,

  • Lyft Paves the Way for Tech IPO Surge
    Zacks29 days ago

    Lyft Paves the Way for Tech IPO Surge

    Lyft is expected to have its initial public offering (IPO) this week making it the first of the ride-hailing companies to open up ownership to the public. The real milestone is the 52 week deficit that Lyft is showing on its income statement in their S-1 filing.

  • Are Bezos Rumors Starting to Affect Amazon?
    Market Realist29 days ago

    Are Bezos Rumors Starting to Affect Amazon?

    How Amazon and Alibaba Are Facing CompetitionAmazon canceled expansion plans for New York CityIn January, the National Enquirer published details of an alleged affair between Jeff Bezos and news anchor Lauren Sanchez. But Bezos read saw mischief

  • Groupon lays off about 20 Chicago employees: Report
    American City Business Journalslast month

    Groupon lays off about 20 Chicago employees: Report

    The Chicago Tribune reported that the 11-year-old daily deals website laid off writers and photographers who developed content for social media.

  • 7 Hot Stocks Under $4
    InvestorPlacelast month

    7 Hot Stocks Under $4

    U.S. equities are holding near major technical support levels -- the 2,800 mark on the S&P 500 and 26,000 on the Dow Jones Industrial Average -- as traders digest the latest Federal Reserve policy decision. Chairman Jerome Powell delivered a dovish message, which the Street had expected given the fresh memory of Q4 market volatility, a lack of inflation pressure, and recent softness in the economic data (aside from job gains).Weighing on sentiment slightly was a disappointing earnings report and outlook from FedEx (NYSE:FDX), which called attention to weaker global trade growth trends.Still, stocks overall are showing a desire to move higher with value hunters eager swooping in on any names that have lagged the epic surge out of the late December lows. There are still bargains if you know where to look. Energy, for instance, is benefiting from fresh strength in crude oil.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter Here are seven stocks trading under the $4-a-share threshold that are worth a look: Cheap Stocks to Buy: Weatherford (WFT)Weatherford (NYSE:WFT) shares continue to consolidate below the $1-a-share level but are riding on the back of a rising 50-day moving average. Watch for a breakout from its five-month trading range, setting up a run at the 200-day moving average that would be worth a gain of 132% from here.The move comes despite a downgrade from analysts at BMO Capital Markets in January. The company, based in Switzerland, is an oilfield service company that supports the drilling, evaluation, completion, and production of oil and gas wells. The company is trying to return to profitability, and trades at just a 0.14 price to sales ratio. Northern Oil and Gas (NOG)Shares of Northern Oil and Gas (NYSEAMERICAN:NOG), an independent energy producer, are looking ready for another breakout attempt from its five-month consolidation range, making another challenge on its 200-day moving average. Watch for a run to the November reaction high, which would be worth a gain of 23% from here.The company last reported results on March 12. Earnings of 25 cents per share beat estimates of 14 cents on revenues of $152.6 million vs. the $153.6 million that was expected. * 5 Cloud Stocks to Help Your Portfolio Fly Management noted an expectation for capital expenditures to be upwards of $285 million in 2019. Groupon (GRPN)Shares of Groupon (NASDAQ:GRPN) are continuing to rise alongside their 50-day moving average, continuing a three-month uptrend. The 200-day moving average has been a hurdle since the stock peaked last summer, so watch for another run to prior resistance near the $4-a-share level. Management has been focusing on higher-value customers and being more efficient with its marketing spend.The company will next report results on May 8 after the close. Analysts are looking for no earnings on revenues of $552.8 million. When the company last reported on Feb. 12, earnings of 10 cents per share missed estimates by three cents on an 8.4% decline in revenues. Chesapeake Energy (CHK)Shares of Chesapeake Energy (NYSE:CHK) are extending a three-month uptrend pattern as it closes in on its 200-day moving average. Watch for a run to the 200-day moving average, which would be worth an easy 10% gain from here. That should be helped by energy prices broadly pushing higher heading into the summer driving season -- benefiting U.S. shale operators like CHK. In January, Imperial Capital analysts noted management continues to focus on capital discipline and improving its balance sheet.The company will next report results on May 1 before the bell, according to Analysts are looking for earnings of 12 cents per share on revenues of $2.3 billion. * Top 7 Service Sector Stocks That Will Pay You to Own Them When the company last reported on Feb. 27, earnings of 21 cents per share beat estimates by four cents on a 21.8% rise in revenues. The9 Ltd. (NCTY)The9 Ltd. (NASDAQ:NCTY) is a Chinese online game developer in China, creating online and massively multiplayer franchises. It was formerly known as and has been around since 1999. Properties include the CrossFire brand mobile shooting games and FireFall.This is an extremely speculative pick, but has been benefiting from the rising interest in Chinese equities on hopes of a trade deal between Washington and Beijing. The company has also pushed into the blockchain space, forming a technology group to explore opportunities in that area. Nabors Industries (NBR)Shares of Nabors Industries (NYSE:NBR) continue to enjoy a smooth, three-month uptrend after suffering a massive 90% decline from its early 2017 high. Watch for shares of the company to make a run at its 200-day moving average, which would be worth a gain of 35% from here. The company provides drilling and drilling-related services to land-based and offshore energy wells.The company will next report results on April 30 after the close. Analysts are looking for a loss of 25 cents per share on revenues of $776.3 million. * 7 Small-Cap Stocks That Make the Grade When the company last reported on Feb. 26, a loss of 55 cents per share missed estimates by 38 cents on a 10.4% rise in revenues. But this cheap stock could be ready to rebound. Clean Energy Fuels (CLNE)Shares of Clean Energy Fuels (NASDAQ:CLNE), operator of natural gas stations for alternative-fuel vehicle fleets such as heavy-duty trucks and buses, are surging higher nearly doubling off of the low seen in late December. This returns the stock to the middle of the trading range that has been in place over the past three years -- providing a solid base of support to any extension to the upside.On March 12, the company reported that quarterly revenues grew 7.7% from the year prior on a 14.2% rise in the amount of natural gas delivered. While electric vehicles get all the attention these days, natural gas vehicles are often a cheaper and easier solution especially for long-haul operators.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post 7 Hot Stocks Under $4 appeared first on InvestorPlace.

  • Class-Action Suits Shouldn’t Stress, or Surprise, Nio Stock Owners
    InvestorPlacelast month

    Class-Action Suits Shouldn’t Stress, or Surprise, Nio Stock Owners

    Has owning Nio (NYSE:NIO) stock made you seasick yet? It would be surprising if it hadn't. Following its September IPO, which was priced at $6.25, NIO stock surged to a peak of more than $13 three days later, back to less than $6 by late October, rallied to more than $10 last month and then fell back to less than $6 per share, where it stands as of this morning. NIO Inc. stock has put investors through the wringer.Source: Shutterstock And some shareholders aren't happy about the volatility… particularly the volatility that's inflicted damage on their portfolios. In fact, a class-action lawsuit has been launched for those who invested in NIO and feel they were duped.It may be a colossal waste of your time to jump on that bandwagon, though. The volatility of NIO stock was inevitable, and in the end its volatility will be irrelevant to most judges and juries.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter That kind of uncertainty is what investors who bought NIO stock signed up for. A Typical Post-IPO StoryNIO has been called the Tesla (NASDAQ:TSLA) of China, and for good reason. While many electric vehicles to-date have looked and felt like glorified go-karts, Nio -- like Tesla -- understands that form and function can also look cool. Nio's ES8 is a luxury vehicle.NIO is also a relatively new company, however. It was founded in 2014, only started to make vehicles in late 2017, and NIO stock only went public in September of last year.NIO stock has also dished out the usual post-IPO swings. The volatility wasn't caused by changes in the company's outlook. Instead, it's a reflection of the market's ever-changing perception of what Nio is, and where it's going.But Tesla stock was also all over the map in its early days, as are most newly-minted stocks.And that's what makes the class-action suit by at least a few investors, bluntly, a little bit sad, if not terribly surprising.The key tenets of the suits are (there are more than one, but they are all based on the same main complaint) summed up in a filing by one group of plaintiffs:"The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) NIO would not be building its own manufacturing plant and would instead continue to rely on JAC Auto to manufacture its vehicles; (2) reductions in government subsidies for electric cars would materially impact NIO's sales; and (3) as a result, Defendants' statements about NIO's business, operations, and prospects were materially false and misleading at all relevant times."Voiced in fairly typical legal-ese, it sounds dastardly.Read it again, though. Is NIO actually "guilty" of anything? Poor ArgumentsIt's true that Nio will continue to work with JAC to develop electric vehicles. But the company never gave a definite time frame as to when it might build its own facility.Here's the kicker on the matter: Nio is actually trying to help itself and the owners of NIO stock by not taking on the steep expense and risk of committing to its own plant right away. Ironically, one of the chief complaints about Tesla in its early stages was how much it spent (and arguably shouldn't have) on building its own production facility.As for the subsidy issue, the company has actually said little about the impact of subsidy changes. It would be naive on everyone's part, however, to think that a termination of subsidies wouldn't create some sort of headwind for NIO stock. That is, to borrow a term from the patent-law world, "obvious" and therefore should not be grounds for a lawsuit.Moreover, the plaintiffs haven't shown that subsidy changes have had a quantifiable, verifiable impact on NIO's business.As for the charge that the company's business, operations, and prospects are "materially false and misleading at all relevant times,"clear definitions of "material," "misleading" and "relevant" must be provided. Those are tricky words for any judge or jury to define.If the class-action suit ends up being successful, then almost every company in the world that's ever disappointed investors for any reason at any time is now subject to litigation. That's just not going to happen. The Bottom Line on NIO StockThe real story isn't the class-action lawsuits that are taking shape. Indeed, it would have been surprising if such litigation didn't materialize. Most companies whose stocks drop in the wake of their IPOs face some sort of legal pushback because we've become a litigious society.Facebook (NASDAQ:FB) -- one of the most rewarding investments since the subprime meltdown -- was sued shortly after going public in 2012 for allegedly covering up worries about its growth prospects. It settled for a laughable $35 million last year, which was probably cheaper than continuing to fight the case.The real story is that this sort of legal and even philosophical wrangling is all part of the growing pains that any new company has to face.Nio didn't do anything wrong. All equity investments always carry some risk. The shareholders of a company don't receive a contract.When you own a stock, it's understood that you're granting decision-making authority to the company's management, who have every right to change their minds about issues. It's a given that a company may never turn a profit; it's possible that a company may crash and burn. Just ask the people who bought Groupon (NASDAQ:GRPN) stock based on the company's brilliant concept that, as it turns out, isn't a terribly profitable one.Groupon settled its post-IPO suit for a scant $45 million.The plaintiffs suing Nio probably won't be able to prove any actual malfeasance by the company. At best, they will prove that they are frustrated because they bought into the hype of the media and the mob vis-a-vis NIO stock.Welcome to the stock market.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site,, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Class-Action Suits Shouldna€™t Stress, or Surprise, Nio Stock Owners appeared first on InvestorPlace.