Stocks of Groupon (NASDAQ:GRPN) has been rising slowly over the past few weeks. It seems to be over the lag phase and any increase from this point on I’d due to excellent management.
Currently Groupon(NASDAQ:GRPN) is at $5.12 after rising since opening by +$0.03(+0.69%). This is an inclination over last week’s closing price of $5.01 which happens to underscore a +6% rise on Monday’s opening of $5.27.
Groupon is a business that leverages its partnerships to deliver great deals for its customers. Therefore its business model is directly dependant upon its ability to be able to make business partnerships which is a liability in itself. It certainly played a part in the initial suppression of the the stock price in the IPO launch. Fortunately for Groupon it has been able to mitigate certain operational risks and the investors seem to be extremely excited about. In fact the news on Groupon is surprisingly positive especially when considered over a year to date period.
The current price of Groupon stock (GRPN) is currently well below its IPO in 2012 of $26.11. However an investor should not concern themselves with the IPO of groupon if they are considering investments. They should rather judge the stock performance based on the previous year to date. Over this time period Groupon stock has shown consistent growth.
The Q2 results in late July caused a +50% increase in Groupon stocks after it was reported that they had better than expected revenue. In addition Groupon has gained +70% year to date as well. Investors would have had a great year hedging their bets with Groupon. This is all in the context of an S&P 500 that declined by -1.5% in the same period since and only gained +4% for the year.
Groupon has shown that it is able to operate a real revenue generating business and has reduced major investor worries that are usually associated with a tech startup. They are managing their brand adequately; their revenue streams are becoming more predictable; and they are improving their customer relationships.
Some analysts even believe that Groupon is even undervalued amongst its internet peers. Wedbush analysts heaped praises on Groupon marketing saying that the improved traffic is due to it making its presence known through adequate marketing. Many analysts believe that Groupon stocks could rise even further to above $6 when the third quarter result is released as this is also expected to beat analyst targets.