GRPN has shown a great buying opportunity lately. During the latest quarter, the adjusted EBITDA jumped by 45% to $46.6 million and billings grew by 16%. The company also has the Number One Retial App and two-thirds of transactions come from mobile sources and a customer satisfaction rating is at 90%.
The overall finances are also in good shape. There is $639 million in the bank and there is no long-term debt.
GRPN may ultimately prove to be an enticing buy out candidate at some point.
Groupon, Inc. (Groupon), incorporated on January 15, 2008, operates online local commerce marketplaces around the world that connects merchants to consumers by offering goods and services at a discount. The Company operates through three segments: North America, which represents the United States and Canada; EMEA, which consists of Europe, and the Middle East and Africa, and the remainder of its international operations (Rest of World). The Company offers goods and services in three primary categories: Local Deals (Local), Groupon Goods (Goods) and Groupon Getaways (Travel). Consumers access marketplaces through its Websites, primarily localized groupon.comsites in various countries, and its mobile applications. Its Local category includes offerings from local and national merchants, as well as local events. Its local offerings consist of various subcategories, including events and activities, beauty and spa, health and fitness, food and drink, home and garden, and automotive. The Company also offers deals on concerts, sports, theater and other live entertainment events through GrouponLive.
The Company’s Goods category offers customers the ability to find deals on merchandise across various product lines, including electronics, sporting goods, jewelry, toys, household items and apparel. Through its Travel category, the Company features travel offers at both discounted and market rates, including hotels, airfare and package deals covering both domestic and international travel. For many of its travel offerings, the customer must contact the merchant directly to make a travel reservation after purchasing a travel voucher from the Company. However, for some of its hotel offerings, customers make room reservations directly through its Websites. The Company’s applications and mobile Websites enable consumers to browse, purchase, manage and redeem deals on their mobile devices. In addition, the mobile experience controls location in several ways, enabling consumers to filter by distance, discover deals near them and visualize the assortment of Groupon offers through a maps view.
Another positive factor that could drive up GRPN stock is its connection with Chinese Internet powerhouse Alibaba Group Holding Ltd (NYSE:BABA), which acquired a 5.6% stake in Groupon in February 2016.
Our rating for Groupon is strong Buy and we can see a positive momentum and $30 a share within one year.