Here’s What Drove Groupon’s Stock Upward Last Month



Groupon stock rose 21.8% in November

The stock price of online deal company Groupon (GRPN) rose 21.8% in November 2017 and closed the month at $5.64 on November 30. The stock is now trading 94% above its 52-week low of $2.9 and 6% below its 52-week high of $5.99.

GRPN stock has generated returns of 42% in the trailing-12-month period and 70% in calendar 2017, after rising 8% last year.

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Gross profit up 6% in 3Q17

Groupon reported revenues of $634.47 million in 3Q17, with non-GAAP (generally accepted accounting principles) EPS (earnings per share) of $0.01. Groupon’s gross profit rose 6% YoY (year-over-year) to $309.4 million in 3Q17, up from $293.3 million in 3Q16. Its gross profit generated from North America rose 3% YoY to $207.9 million, while international markets saw a rise of 11% in gross profits at $101.5 million.

Analysts expect Groupon’s revenues to fall 8.5% YoY (year-over-year) to $855.28 million in 4Q17 and 10.1% YoY to $2.82 billion in fiscal 2017. The firm is likely to experience revenue growth of 3.1% in fiscal 2018.

Groupon’s shares rose over 20% in September as well, when the firm launched Groupon+, a service allowing customers to use Groupon meal deals when they pay with Visa (V) or Mastercard (MA) debit or credit cards.

According to the terms of this deal, customers will get 30.0% of the deal value back in their respective accounts.


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