Despite reporting a narrower-than-anticipated adjusted loss and beating expectations on sales, shares of Groupon fell Wednesday; the broader market indexes also opened lower as investors reacted to news that the numbers of new cases of COVID-19 were rising in parts of the U.S. Image source: Getty Images. Now what
Why did Groupon drop today?
Groupon forecast cut sends stock plunging Groupon Inc.'s stock fell 17% to $13.05 in after-hours trading Monday after the company reported a quarterly loss and revised annual financial projections, saying it expects a more muted recovery.
Will Groupon stock recover?
At the low end of the guidance range, GRPN expects local recovery rates in H2 of 2022 to only improve modestly vs. current recovery levels. At the high end of the range, GRPN projects local recovery rates in H2 of 2022 to be relatively in-line with recovery rates seen in H2 of 2021.
Is Groupon good to invest in?
Groupon, Inc. may be fairly valued. Its Value Score of C indicates it would be a neutral pick for value investors. The financial health and growth prospects of GRPN, demonstrate its potential to perform inline with the market. It currently has a Growth Score of F.
Is Groupon going to go out of business?
On the bright side, Groupon won't go bankrupt anytime soon. Its cash and equivalents balance dipped 11% to $750.9 million in 2019, but it hasn't drawn any cash from its $400 million revolving credit facility yet.
Is Groupon undervalued?
Groupon Stock Is Overlooked And Undervalued, In Stark Contrast To Airbnb (NASDAQ:ABNB) | Seeking Alpha.
Does Groupon stock pay dividends?
GROUPON (NASDAQ: GRPN) does not pay a dividend.
What is the future of Groupon?
According to the 6 industry analysts covering Groupon, the consensus is that breakeven is near. They expect the company to post a final loss in 2021, before turning a profit of US$60m in 2022. Therefore, the company is expected to breakeven just over a year from now.
Is Groupon still around?
By the end of March 2015, Groupon served more than 500 cities worldwide, nearly 48.1 million active customers and featured more than 425,000 active deals globally in 48 countries. Groupon, Inc....Groupon.Corporate headquarters at the Montgomery Ward Company Complex in Chicago, IllinoisType of businessPublicArea servedGlobal18 more rows
What kind of stock is Groupon?
Common StockCommon Stock (GRPN)
Is Groupon a failure?
Groupon shares have fallen 48% in the past 12 months and are now a full 93% below their IPO issue price of $20. Blue Apron shares are down 85% the past year and about 98% below their IPO price of $10, including the effect of the reverse stock split.
Why is Groupon not successful?
There was no effective way to limit the quantity of items you sold at a discount. Shops were driven into bankruptcy because Groupon sold thousands of items below cost. That's crazy.” In other words, the company never did become adept at bridging the gap between traditional commerce and the web.
How is Groupon doing financially?
Groupon has been on a restructuring path and achieved fixed cost savings of $140 million in 2020 and is expected to achieve $225 million in cost savings by 2022.
Key Points
One analyst lowered the price target on the shares, adding to the negative news stories about the company in recent days.
What happened
Shares of Groupon ( NASDAQ:GRPN) were down 6.9% at 12:20 p.m. EDT on Tuesday, after Ascendiant Capital Markets cut its price target on the stock from $70 to $40.
So what
It's been a bad couple of weeks for Groupon. On Aug. 5, the company reported disappointing earnings results, with sales falling 33% in the recent quarter. There was also troubling news in the U.K., where the Competition and Market Authority called on Groupon to make changes to how it treats its customers.
Now what
Even if we ignore the legal issues and focus on Groupon's business performance, Groupon is not a stock that investors should expect to profit from. Sales are down 44%, 29%, and 33% over the last three quarters, which shows a business struggling to hang on to customers.
