GRPN - Groupon Inc

"Groupon's massive, active mobile audience - and great savings opportunities - will help drive new customers..." - CEO

 

CEO talked about moving away from the paper vouchers.

There's still a weak point in the system. I think the only thing Groupon says they give is advertising for the merchants. The merchants are the ones making the bulk of the sacrifice in providing the sale, so I've heard of merchants providing the sale price without needing the voucher. Because hey they've know they've got their advertising (you're there with the voucher), so why take the voucher and give a cut to Groupon?

In spite of this, they manage $3B of online sales. With their website/mobile maybe they can provide greater advertising value in the future.

 

Feels overextended after the Earnings Report but will try to get in if it slows down around $5.75

 

A lot of positives from technical analysis. On watch for clear above 5.49.
http://www.stoxline.com/quote.php?symbol=grpn

 

Re-testing 6-spot this week.

 

Groupon reported better-than-expected first-quarter results, as last year’s restructuring is bearing fruit. While streamlining the operation is helping Groupon expand margins, the firm is continuing to increase marketing as a percentage of revenue. It has done so since 2015. Analysts speculate this is because of its lack of network effect and low switching costs, which forces Groupon to continue to increase its marketing spending.

 

Looks like this will go back toward $4.

 

If the March low holds, this could bounce back strongly.
Analyst estimates show this is GAAP-profitable and positive cash flow this year.