GRPN - Groupon, Inc.
3.4800 -0.05 (-1.42%)
After hours: 5:56PM EDT
| Previous Close | 3.4600 |
| Open | 3.4600 |
| Bid | 3.4300 x 41800 |
| Ask | 3.5700 x 900 |
| Day's Range | 3.4600 - 3.5650 |
| 52 Week Range | 2.8000 - 5.5200 |
| Volume | 3,635,211 |
| Avg. Volume | 6,393,210 |
| Market Cap | 2.013B |
| Beta (3Y Monthly) | 1.20 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -0.0200 |
| Earnings Date | May 7, 2019 - May 13, 2019 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 3.88 |
- American City Business Journals•6 hours ago
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.
- InvestorPlace•8 hours ago
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 Nasdaq.com. 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 GameNow.net 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.
- InvestorPlace•10 hours ago
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, jamesbrumley.com, 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 Shouldnat Stress, or Surprise, Nio Stock Owners appeared first on InvestorPlace.
- ACCESSWIRE•yesterday
Tech Stocks Now Even Hotter with Latest News
HENDERSON, NV / ACCESSWIRE / March 20, 2019 / Technology stocks had a challenging 2018. The Tech Select Sector SPDR (XLK) finished the year on a nearly 3% decline and the tech heavy Nasdaq Composite dropped ...
- Motley Fool•2 days ago
Groupon's Evolving Business Strategy
Groupon is phasing out the coupon vouchers that made it popular and taking on new initiatives to invest in the health of its marketplace.
- Market Realist•4 days ago
What Drew PayPal to MercadoLibre?
All You Need to Know ahead of PayPal’s Q1 Results(Continued from Prior Part)MercadoLibre is raising funds for expansion PayPal (PYPL) announced on March 11 that it would invest $750 million in the purchase of an equity stake in MercadoLibre (MELI).
- Simply Wall St.•6 days ago
Do Institutions Own Groupon, Inc. (NASDAQ:GRPN) Shares?
A look at the shareholders of Groupon, Inc. (NASDAQ:GRPN) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual toRead More...
- Zacks•7 days ago
Why Is Groupon (GRPN) Down 3.7% Since Last Earnings Report?
Groupon (GRPN) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
- Market Realist•14 days ago
Alibaba Is Confident despite China Slowdown
Recent Updates from Amazon and Alibaba(Continued from Prior Part)Alibaba doesn’t seem worried by economic slowdown or trade war Despite cutting its fiscal 2019 revenue guidance by as much as 6.0% and China’s much-publicized economic slowdown,
- InvestorPlace•16 days ago
YELP Stock Needs More Than Big Promises from Management
For the last few years, the performance from Yelp (NYSE:YELP) hasn't been quite good enough. Yelp is growing: Adjusted EBITDA rose 16% in 2018, but growth was priced in. The YELP stock price is down 14% over the past year, and still sits below mid-2015 highs.Source: Shutterstock Yelp management clearly believes that will change. Executives laid out aggressive targets in conjunction with Q4 earnings last month. If Yelp hits those targets (or comes close) the stock has tremendous upside. But the initial reaction to those plans suggests that investors are skeptical. Recent history suggests they have good reason. * 7 Chinese Stocks to Buy for the 2019 Rebound Yelp's New TargetsIn the fourth quarter release, Yelp detailed its targets for the next five years. Revenue is expected to rise in the "mid-teens" annually through 2023. Adjusted EBITDA margins are expected to rise 2-3 points in 2019 and at a similar pace for the following four years, ending at 30-35% against 2018's 19%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf Yelp hits those targets, earnings will soar. Assuming 15% annual top-line growth, revenue should double over the five years to $1.9 billion. Margins of 32.5%, the midpoint of the out-year target, suggest Adjusted EBITDA of $617 million.That's more than triple 2018's $183 million. Assuming a 24% tax rate and a modest rise in depreciation and amortization, net income would reach the range of $400 million. That's close to $5 per YELP share.However an analyst runs these numbers, they suggest enormous upside. A 12x EBITDA multiple, plus cash, gets the stock to $100. A 20x P/E multiple - again, plus cash - gets YELP past that point.The current YELP stock price sits below $37. As such, there's a reasonable case that if Yelp management is right, YELP stock could triple. And the company is putting its money where its mouth is: the company doubled its share buyback authorization after Q4, and pledged to buy back $250 million of Yelp shares in the first half of the year alone. The Reaction to Yelp EarningsOf course, it's also reasonably clear that investors don't trust Yelp management. YELP stock actually soared in after-hours trading following the Q4 report. In regular trading the next day, however, the YELP stock price actually dipped modestly. An analyst upgrade gave the stock a boost, but it has weakened in recent sessions, and now trades well below its pre-earnings price.That seems surprising given solid 2019 guidance, the long-term targets, and an impressive Q4. (Adjusted EPS of $0.37 crushed consensus estimates of $0.10.) But investors do have some reason to be skeptical.Indeed, there are concerns with the Yelp business model, dating back to those I detailed on this site back in 2017. Yelp is projecting strong revenue growth but activity on the site isn't increasing all that fast. Figures from the 10-K suggest that the number of reviews on Yelp has risen only 6-7% on average in the past three years.The aggressive long-term targets are somewhat belied by recent performance. Revenue rose just 11% in 2018. Adjusted EBITDA margins were flat. Yelp is projecting quite an acceleration in the business, in terms of both the top line and margins.Most of the operating leverage is supposed to come from sales and marketing, which Yelp believes can be leveraged by ten full points, the majority of the projected margin expansion.That goal depends on one shift; one that Yelp hasn't been able to master so far. Self-Serve and YELP StockFor Yelp to leverage sales and marketing spend, two things have to happen. First, revenue has to continue to grow. Secondly, Yelp has to drive that revenue growth while moderating its spending on sales and marketing.That's obviously easier said than done. That's particularly true given that Yelp's model requires intensive sales and marketing spend, which accounted for over half of 2018 revenue.The way to do this is to drive a "self-serve" model. At the moment, Yelp is selling most of its services - which undercuts the value (and operating leverage) of the platform. It's a model that looks a more like Groupon (NASDAQ:GRPN) than Match Group (NASDAQ:MTCH) or TripAdvisor (NASDAQ:TRIP). That's obviously not a good thing.So the pivot to more self-serve revenue makes some sense. The question is whether it will work. Yelp already is struggling with higher cancellations. And local advertising competition remains intense, with Facebook (NASDAQ:FB) an obvious rival and myriad other smaller and mid-sized offerings (including from newspapers).The concern here is obvious. Yelp is having trouble keeping customers even while it spends 50%+ of sales attracting and maintaining those customers. Can it do better in terms of retention while spending less (on a relative basis)?Investors don't believe it can. Right now, that skepticism makes some sense. But if Yelp can show some progress and regain investor confidence YELP stock is too cheap. That's a big 'if' - but it no doubt would lead to big rewards.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Big Data Stocks That Deserve a Closer Look * 7 Best Energy Funds to Outperform the Market * 5 Blue-Chip Stocks Ready to Rise Compare Brokers The post YELP Stock Needs More Than Big Promises from Management appeared first on InvestorPlace.
- InvestorPlace•17 days ago
7 Stocks Under $10 You Shouldn’t Buy
[Editor's note: This story was originally published in October 2018. It has since been updated and republished. It is likely the author's opinions have shifted since original publication.]Everybody loves a deal when it comes to investing. It's why there are a lot of articles written about stocks under $10 and the reasons you should buy them. This article isn't one of those.I decided to write about stocks you shouldn't buy under $10 after reading an article about Sears Holdings (NASDAQ:SHLDQ) and how its stock's dropped below $1 and risks delisting. It shouldn't come as a surprise to anyone that Sears is ready for the scrap heap. It's been on a retail deathwatch for several years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe fact is, there are times when stocks under $10, are trading at that level for a reason, and there are other times when a stock is merely misunderstood and ready for a revival.Generally, I'm a glass-half-full person who likes to pick stocks to buy rather than sell, but for this article, I'm going to recommend seven stocks under $10 that should be sold, if owned, and avoided if contemplating. * 10 Best Stocks to Buy and Hold Forever Sometimes, a dog stock is just that. Chesapeake Energy (CHK)Source: Philadelphia 76ers Via FlickrIf you bought Chesapeake Energy (NYSE:CHK) stock at the end of 2018, you're actually up roughly 42% year to date. However, if you bought CHK stock roughly 15 years ago and still hold today -- which is unlikely -- you've lost 0.84% on an annualized basis, much worse than the 10.3% annualized total return for the oil and gas sector as a whole.A recent article by Seeking Alpha contributor Giovanni DiMauro -- the author argued that Chesapeake's $1.25 billion offering of senior notes at interest rates between 7.0%-7.5% was too high -- reminded me why I suggested in August that Chesapeake would not be one the stocks under $10.It just has too much debt. And even though the bond offering lowers the company's overall interest rate, it will still have $8.5 billion in debt after the Utica shale divestiture.However, in August, I did say that buying under $4 was a good play for aggressive investors."Its long-term debt is still $9.2 billion or more than double its market cap, although that's expected to drop with the recent $2 billion disposition of some of its Utica shale assets in Ohio. Like I said last September, for those that can afford to lose their investment, an entry point below $4 remains a good one.Above that, I'd look elsewhere."Now I'm not so sure. The company keeps insisting that it will get to free cash flow neutrality, but if it can't do that at $75 a barrel, how's it going to do it at $55? Only speculators should own this stock. Ford (F)Source: Shutterstock If you bought Ford (NYSE:F) stock at the end of 2017, you're down around 8% in that timeframe. Ford hasn't had an annual gain of more than 20% since 2013. Over the past five years, it's down 6.0% annually compared to 2.6% for its peer group.Back in July 2017, I argued that GE (NYSE:GE) should have hired an outsider who could come in and give the business a fresh set of eyes. They didn't do that. Now, Flannery's out as CEO.I mention this because, in June 2017, I suggested that Ford stock was dead money until the car maker got a real innovator as CEO. Jim Hackett might be a great guy, but he's not the person for the job. The September vehicle sales have come out. Ford's reported that its total U.S. sales fell 11.2% to 197,404 vehicles. Ford's F-Series declined 8.8% in the first month of fall, although it was competing against strong sales from a year earlier. That said, both Jeep and Ram trucks had record Septembers. * 7 Consumer Staples ETFs to Buy Now If Ford's bread and butter (the F-150) can't grow sales, you can forget about $10. There are better options in the automotive industry and better stocks under $10 to buy. Groupon (GRPN)Source: Shutterstock Groupon (NASDAQ:GRPN) stock is down 26.2% in 2018. Trading at or near its 52-week low of $3.65, the glass-half-full investor might argue that it's in a better situation today than when it traded near $2 in February 2016.Perhaps, but I'm sure there is a big segment of the population that has no idea Groupon still exists, and that's a huge problem. The only reason why Groupon hasn't retreated to sub-$2 is that the company is shopping itself around and investors are speculating that Alibaba (NYSE:BABA), who owns 5.6% of the promotional deal site, could be a potential virus.Also, Jim Cramer loves Groupon's balance sheet and thinks it's doing well. He's not wrong. It expects to generate adjusted EBITDA of at least $280 million in 2018, $30 million higher than in 2017. Not to mention its free cash flow yield is currently 8.3%, just inside the 8% value criteria.However, I just don't see private equity being interested in Groupon despite having more than $600 million in cash. At the end of the day, only a strategic buyer like Alibaba would be interested, but not at a big premium to its current share price. GRPN will likely stay a stock under $10. Snap (SNAP)Source: Shutterstock Down 44.5% year-to-date , it's easy to see how some investors view Snap (NASDAQ:SNAP) as a value buy at these levels. I'm not one of them.I've not been a fan of Snap's business pretty much since its IPO in March 2017, when it sold 200 million shares at $17 a pop, generating several billion for it to fritter away."Sure, they might have read the section of the Snap Inc. prospectus that warned 'it may never achieve or maintain profitability' and reflected on this warning, but I highly doubt it," I wrote in April 2017 discussing the company post-IPO. "The reality is that anyone who bought SNAP stock, young or old, broke one of the cardinal rules of investing: Buy profitable businesses at reasonable prices."Analysts, too, have become impatient with Snap's inability to make money."We are tired of Snapchat's excuses for missing numbers and are no longer willing to give management 'time' to figure out monetization," BTIG analyst Richard Greenfield wrote in a September note. "We incorrectly stuck to our neutral rating in October 2017 due to our view that communications apps were sticky and would protect Snapchat engagement, with management simply needing more time to figure out monetization." * 7 Big Data Stocks That Deserve a Closer Look SNAP, quite simply, is a stock for speculators only. Vipshop (VIPS)Source: Shutterstock This time eight months ago, Vipshop Holdings (NYSE:VIPS) was trading above $18, its highest level since November 2015. Then it delivered a couple of underwhelming quarterly earnings reports and the rout was on. It's now lost two-thirds of its value trading below $6 as I write this.Three things stand out about Vipshop's current situation: 1) revenue growth is decelerating, 2) earnings are declining, and 3) active customers have flatlined."This was supposed to be a year of market expansion after it struck a partnership deal with two of China's internet titans, but the win-win-win deal hasn't resulted in the kind of exposure and uptick in customers that many bulls originally envisioned," wrote the Motley Fool's Rick Munarriz September 10. "Vipshop may seem like a bargain today at just 10 times this year's projected earnings and 8.5 times next year's bottom-line target, but those profit targets keep dropping as the niche conditions worsen."Is it the worst buy of these seven stocks under $10?Absolutely not, but that doesn't mean I'd go anywhere near it until it demonstrates a couple of quarters of renewed growth. Until then, you're definitely not putting your investment capital to its best use. Zynga (ZNGA)Source: Brownpau via Flickr (Modified)After a massive rebound in 2017 -- it had a 55.6% total return -- it's not surprising that Zynga (NASDAQ:ZNGA) stock has gone sideways in 2018, up about 2% YTD.Like Groupon, Zynga is one of those companies that seems to fly under the radar. With games like FarmVille (14% of revenue in Q2 2018), CSR Racing (14%), Slots (27%) and Zynga Poker (23%) continuing to generate revenue growth for the game developer, it's easy to see why it still has investor support.Valued at $3.4 billion, that's a lot of money for a company that's never made more than $125 million in operating income. Currently trading at 37 times cash flow, you can buy Activision Blizzard (NASDAQ:ATVI) stock for less than 31 times cash flow, a company that has ten times the operating income. * 5 Retail Stocks Ready to Break Out Oh, and in case you were wondering, ZNGA stock hasn't traded above $10 since April 2012. Nio (NIO)The last of our stocks under $10 to avoid is NIO (NYSE:NIO). NIO went public on September 11, 2018, selling 160 million shares at $6.26 for net proceeds of $954.9 million. It had a strong start gaining 5.4% on its first day moving as high as $11.60 within a couple of days of its IPO. Since then the Chinese electric vehicle maker has given back all of its gains and looks ready to fall below $6. Nio wants to deliver a Tesla-like vehicle at a lower cost. However, if experience making cars is important to you, you'll want to avoid its stock."Nio's not a stock we have any interest in," said Mark Tepper, president and CEO of Strategic Wealth Partners, managing over $1 billion in assets, told Business Insider. "An unproven management team along zero experience in manufacturing cars makes this an easy stock to steer clear of."Since launching its ES8 SUV in December 2017, the company's delivered just 1,602. It has another 15,778 unfulfilled reservations; 39% have a $6,544 non-refundable reservation. The remaining 61% of reservations have a $727 fully refundable deposit. It also has plans to launch the ES6, a 5-seater SUV by the end of 2018, with deliveries in the first half of 2019.And like Tesla (NASDAQ:TSLA), Nio doesn't make money. In the first six months of fiscal 2018, Nio had revenues of $7.0 million and a net loss of $502.6 million. If you're going to bet on an electric vehicle maker, Nio isn't the one.As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Retail Stocks Ready to Break Out * 7 Strong Buy Stocks the Street Loves * 10 Best Stocks to Buy and Hold Forever Compare Brokers The post 7 Stocks Under $10 You Shouldnat Buy appeared first on InvestorPlace.
- InvestorPlace•24 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 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. * 7 Cheap Stocks That Make the Grade In fact, here's a run-down of four of the best penny stocks to mull for 2018, and maybe beyond, none of which aren't exchange-listed names.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSource: Irene Grassi via Wikimedia (Modified) AK Steel Holding Corporation (AKS)One would think the steel business to be a steady and predictable one, with these stocks (and steel prices) ebbing and flowing more or less with the bigger economic cycle. One would be wrong in thinking this, 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.The end result? An already-cheap AKS stock has basically gone nowhere for the past 15 years, with everything that could go wrong during that time 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.Analysts think so anyway, with earnings and revenue projected to grow this year.Source: Shutterstock 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 $3.70 per share now. * 7 Healthy Dividend Stocks to Buy for Extra Stability The bears may have overshot with their pessimism though. PDL BioPharma could arguably overpay for a drug and still be money ahead.Source: Shutterstock Groupon Inc (GRPN)Talk about a fall from grace! Yes, Groupon (NASDAQ:GRPN) was a marker darling when it went public back in 2011, at a price of $28 per share. It has 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 shares deserved the beating they took. Not only was its pre-IPO growth rate not built to last, a host of competition has stepped up to the plate in the meantime. Net income peaked in 2012, and sales peaked in 2015.The daily-deals company may have finally found a winning formula though, setting the stage for a better 2019 and beyond.Analysts say that while sales are apt to fall another 8.2% this year, income is projected to improve. That may be all traders need to see to get this stock back in a nice uptrend.Source: Brownpau via Flickr (Modified) Zynga Inc (ZNGA)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 too when it first IPO'd. * 9 High-Growth Stocks to Buy Now for Monster Returns Change is brewing though. Last year 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, that news comes at a time when revenue and income are starting to edge higher anyway.Not too many investors have noticed yet, but when they do, ZNGA is apt to get over the $5 hump. A more equitable voting rights scheme will only bolster the bullish case.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.Compare Brokers The post 4 Penny Stocks to Own for 2019 appeared first on InvestorPlace.
- ACCESSWIRE•24 days ago
Best Way to Invest in AI
HENDERSON NV / ACCESSWIRE / February 25, 2019 / America recently took another step to secure its place as a world leader in Artificial Intelligence when President Trump signed an executive order creating ...
- American City Business Journals•27 days ago
Move over unicorns — here are the Bay Area's 21 'minotaurs' who have raised more than $1B in funding
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.
- InvestorPlace•last month
Groupon Stock Investors Mull Results: Disaster or Just Disappointment?
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 danablankenhorn@gmail.com 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.
- InvestorPlace•last month
Slow Turnaround Means Limited Upside for Groupon Stock
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.
- Motley Fool•last month
Why Groupon Is Rebranding Groupon+
The online coupon marketplace is ditching its new product's name, but expanding the actual product.
- InvestorPlace•last month
Is Groupon Stock a Buy or Sell After Last Week’s Earnings Miss?
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.
- Market Realist•last month
How Will eBay Fund Its Dividend Program?
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
- Market Realist•last month
Amazon’s Brand New Headwind: Counterfeiting
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,
- Benzinga•last month
Groupon's Transition Year Keep Analysts On The Sidelines
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, ...
- GlobeNewswire•last month
Consolidated Research: 2019 Summary Expectations for Sabre, Groupon, Intrexon, Comfort Systems, O'Reilly Automotive, and Ellington Financial — Fundamental Analysis, Key Performance Indications
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,.
- Zacks•last month
Groupon (GRPN) Q4 Earnings Miss, Revenues Beat Estimates
Groupon (GRPN) hurt by lower customer traffic. However, investments in scaling Groupon+ and maximization of long-term gross profit are a positive.
- Reuters•last month
US STOCKS-Wall Street advances on trade hopes, tame inflation data
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.
