What Can Move Groupon’s Stock By Over 10%?

-70.78%
Downside
14.36
Market
4.20
Trefis
GRPN: Groupon logo
GRPN
Groupon

Groupon (NASDAQ:GRPN) reported mixed first quarter earnings in April, with revenue beating market expectations but its net loss tripling over the prior year quarter. The company’s gross billings, revenues and profits declined in international markets owing to its strategy to focus on the North American market and move away from certain low-margin goods businesses. However, the company’s gross billings per active user declined by 4% in the North American market.

grpn-28In our current valuation, we estimate this metric to improve at a CAGR of 1% over the next 5 years. If the gross billings per active user in North America decline by 4% over the next 5 years, our valuation for Groupon could decline by 13%. grpn-25grpn-26grpn-27 Have more questions about Groupon? See the links below:

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Groupon
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