Stock fell over 8% last week
Online tech (QQQ) firm Groupon (GRPN) fell over 8% in the week ended July 21, 2017, and closed at $3.65. There was no catalyst or news surrounding the price drop. The stock has risen almost 10% in 2017 after generating returns of 8% in 2016. Groupon is now trading 25% above its 52-week low of $2.9 and 38% below its 52-week high of $5.94.
Groupon stock fell over 20% in May this year driven by disappointing 1Q17 results. In 1Q17, Groupon reported revenue of $673.6 million, indicating a fall of 3.6% YoY (year-over-year). Analysts estimated revenue of $724.4 million in 1Q17. Groupon is expected to announce 2Q17 results on August 2, 2017, and analysts expect the firm to post revenue of $669.98 million with EPS of $0.00. In 2Q16, Groupon reported revenue of $750 million.
Can Groupon continue to increase global customers in 2Q17?
At the end of 1Q17, Groupon served 48.3 million users worldwide compared to 44.2 million global active users in 1Q16. 66% of Groupon users, or over 32 million, live in North America. The chart above shows how Groupon’s user base has changed in the past few quarters.