These numbers were released after the close, but every trader and their brother was buying this morning. Insider trading is rampant on Wall St. This is clearly yesterday's news for the privileged few.
Eh, it's actually because everyone who's shorting GRPN covering their shares prior to the catalyst event. Everybody knew that GRPN's earnings were going to be positive (not positive but that it's going from red ink to earning $0.01/share, ha), so even though this company is POS. For the short-term, you don't want to going against the herd who will be turning around from bashing to mildly praising. When shorts cover, it's a wave that eventually lead to a squeeze which causes more shorts to cover - lifting the price.
Personally, this is a great event. GRPN will go up a little, leaving it more room for the slow bleed later and given that there's also weekly option series. GRPN is a great stock to trade.
>every trader and their brother was buying this morning
I've noticed over the past year that such stock price behavior is particularly acute near market close (which is perhaps when the less-priviledged-of-the-priviledged-few get in on the info.).
So revenues up from $295m to $559m and operating income from -$146mn to $-12mn. Managing to grow revenue while narrowing the gap to black by quite a margin, good on them. I just wish they would quite re-stating the non-GAAP numbers. What value do they have beyond letting the press release have a dubious headline?
Actually most companies and ALL analysts use non-GAAP numbers (search for your favorite company + non-gaap https://www.google.com/search?sourceid=chrome&ie=UTF-8&#...)... it reflects the true nature of the business. They are also referred to as pro-forma numbers. There isn't any funny business going on here. It is good that we have GAAP so you can compare apples to apples in different industries but for a further breakdown non-GAAP numbers are very useful to an analyst.
What worries me is that Groupon is still just a company that 'happened' to be able to raise enough capital to become the biggest of 100s of businesses all doing the same thing.
Nothing about their business is hard to replicate, nothing is revolutionary, nothing has not been done before.
It seems many investors and analysts see a 'social media shopping experience' while all I see is a flyer in my mailbox 'on the internet'.
What's to stop Groupon from becoming the MySpace of online coupons to a future Facebook in the same sphere?
I'm not sure how big of an advantage it is, but isn't the "Groupon" brand fairly valuable? For a non-user of daily coupon sites like myself, the first site I'm going to visit if my daily-couponing interest is piqued, will be Groupon.
The counterargument of course, is that daily deals sites only attract the bargain hunters who have little to no brand loyalty, so even the "biggest brands in the business" don't have retention power.
Now that I've written this post out, perhaps the latter effect is in fact stronger...
This is somewhat true of Amazon as well, though they later went on innovate with their web services. Early on they just happened to be one of the first and capitalized on their access to cheap capital.
Does this report in combination with the board members who resigned ~2 weeks ago smell somewhat...fishy...to anyone else? If things were going so well, why did 2 board members bail?
I think Groupon has far more potential than people assume. By being the biggest and having established some integration with local merchants, they could dominate the local space beyond just daily deals.
The bleeding has slowed, but still bleeding. Difficult to gauge whether the patient will survive. That people pour(ed) so much money into this continues to astound me.
I'm surprised by the continued negative drum beating by some. The technocommentariat has had it in for their favorite "big Ponzi scheme" for awile but ... here Groupon is, not going bankrupt like the top comments in every related HN thread for the last year have assured us they shortly would. On the contrary they're doing great.
[+] [-] jcampbell1|14 years ago|reply
[+] [-] noname123|14 years ago|reply
Personally, this is a great event. GRPN will go up a little, leaving it more room for the slow bleed later and given that there's also weekly option series. GRPN is a great stock to trade.
[+] [-] dude_abides|14 years ago|reply
http://twitter.com/#!/GSElevator/status/197718817382739968
[+] [-] hkmurakami|14 years ago|reply
I've noticed over the past year that such stock price behavior is particularly acute near market close (which is perhaps when the less-priviledged-of-the-priviledged-few get in on the info.).
[+] [-] sabat|14 years ago|reply
[+] [-] marcusf|14 years ago|reply
[+] [-] pitdesi|14 years ago|reply
[+] [-] SODaniel|14 years ago|reply
Nothing about their business is hard to replicate, nothing is revolutionary, nothing has not been done before.
It seems many investors and analysts see a 'social media shopping experience' while all I see is a flyer in my mailbox 'on the internet'.
What's to stop Groupon from becoming the MySpace of online coupons to a future Facebook in the same sphere?
[+] [-] hkmurakami|14 years ago|reply
The counterargument of course, is that daily deals sites only attract the bargain hunters who have little to no brand loyalty, so even the "biggest brands in the business" don't have retention power.
Now that I've written this post out, perhaps the latter effect is in fact stronger...
[+] [-] drumdance|14 years ago|reply
[+] [-] ye-olde-taper|14 years ago|reply
They will simply move on to the next thing.
[+] [-] mbell|14 years ago|reply
[+] [-] martinshen|14 years ago|reply
[+] [-] loceng|14 years ago|reply
[+] [-] debacle|14 years ago|reply
On the other hand, how can we be sure these are the real numbers will all of the recent scandal?
[+] [-] tonycoco|14 years ago|reply
[+] [-] cantbecool|14 years ago|reply
[+] [-] staunch|14 years ago|reply
[+] [-] hcurtiss|14 years ago|reply
Also surprised by the upbeat comments here.
[+] [-] Steko|14 years ago|reply
[+] [-] rmATinnovafy|14 years ago|reply
It has broken the barries of online marketing by showing the common person that they can profit from internet marketing.
There is so much potential and money in this area that I sometimes wonder why more startups are not attacking it.
[+] [-] treenyc|14 years ago|reply
That make it far more important than what Facebook or any other trendy startup is doing.
[+] [-] jbigelow76|14 years ago|reply
It's a succinct and catchy concept, the rant seems oversimplified IMO, but I do like the concept.
[+] [-] brokentone|14 years ago|reply
[+] [-] antr|14 years ago|reply
I won't get tired of saying this.
[+] [-] brokentone|14 years ago|reply
[+] [-] unknown|14 years ago|reply
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[+] [-] timaelliott|14 years ago|reply
Interactive reporting of every Groupon deal, this demo account goes back to 2011.
[+] [-] usaar333|14 years ago|reply
[+] [-] cantbecool|14 years ago|reply
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