Will Groupon’s Stock Keep Rising in 2017?



Groupon stock rose 37.4% in the last one month

US-based (SPY) Groupon (GRPN) has risen 37.4% in the trailing-one-month period. Groupon announced its 4Q16 results earlier this month and beat analyst earnings and revenue estimates. Groupon posted non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $0.07 and revenue of $934.9 million in 4Q16 compared to analyst EPS estimates of $0.03 and revenue estimates of $913 million.

Gross billings in 4Q16 fell to $1.7 billion compared to $1.71 billion in 4Q15, driven primarily by restructuring activities and its exit from major international markets. Groupon added 5.2 million North American customers in 4Q16 and the total North American customers now stand at 31.1 million.

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“In 2016, our concentrated focus on key strategic initiatives provided a strong foundation for Groupon going forward and resulted in a streamlined global operation, a healthier Goods business, improved customer service and strong customer acquisitions after a successful online and offline marketing strategy,” chief executive officer Rich Williams said in a statement.

LivingSocial offset declines from international exits

Last year, Groupon acquired LivingSocial, a daily deals provider for an undisclosed amount. Since Groupon’s aggressive international expansion failed to yield the expected benefits, its new strategy is to focus on dominating the North American daily deals market. Groupon expects LivingSocial to add ~1.0 million new active customers, which could boost sales for the platform.

LivingSocial was once valued at $1.0 billion but its valuation has recently fallen significantly. Amazon (AMZN) once invested in LivingSocial. Amazon pumped ~$200.0 million into the business but walked away when things didn’t seem to work for daily push deal providers.


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