(VIANEWS) – Groupon (NASDAQ: GRPN) shares have recently surged by 33.88% over 21 sessions, rising from EUR14.02 on February 2 to EUR18.77 at 12:23 EST Tuesday after prior sessions’ declines. Even while overall market index fell 1.59% to EUR15,949.23 on Tuesday, Groupon outshone its competitors. Groupon closed at EUR18.22 last Friday which is 4.11% below its 52-week high of EUR19.00; its recent uptick could be linked to various factors like earnings reports or favorable market conditions
About Groupon
Groupon is an online marketplace connecting consumers with local merchants offering goods and services, operating across North America and International markets. Selling third-party merchant products as well as keeping its own inventory of first-party items, customers access this platform via mobile apps or websites; Groupon was previously known as ThePoint.com before rebranding to its current name in 2008.
Yearly Analysis
According to available data, Groupon stock is currently trading below its 52-week high but well above its 52-week low, suggesting a significant recovery but remaining volatile.
Groupon projects negative 14.7% sales growth this year and negative 1.4% projected for next year – both figures reflecting substantial declines.
Groupon has reported an EBITDA figure of -26.62, which indicates it is not producing positive cash flow from its operations and may not be profitable in the short-term. This could cause concern among investors.
Groupon stock represents a high-risk investment. Sales growth is steadily decreasing and EBITDA remains negative; yet its stock has recovered significantly since hitting its 52-week low – providing potential opportunities to investors willing to accept higher risk in return for potentially higher returns. It’s vital that investors carefully examine each company’s fundamentals, industry trends and overall market conditions prior to making any decisions related to investments in Groupon.
Technical Analysis
Groupon, the global online marketplace connecting consumers with local businesses, has seen its stock price dramatically rise in the past month; at EUR17.46 it stands well above both its 50-day moving average of EUR14.49 and 200-day moving average of EUR10.79 indicating an upward momentum in its stock price.
Today’s reported volume of 194,831 is considerably less than its usual trading activity of 801,908, suggesting diminished trading activity. This may reflect lessening interest in this stock at its current price level.
In the last quarter, volatility for this stock has been relatively low with an average intraday variation of 3.02% and highest amplitude of average volatility being also 3.02% – suggesting its price movements have been relatively stable during that timeframe.
According to the stochastic oscillator, which measures overbought and oversold conditions, Groupon stock currently appears oversold, with a reading of less than 20 on this indicator. This may portend an upcoming price correction as well.
Quarter Analysis
Groupon’s sales growth for both the current quarter (-7.7%) and its next one (-1.7%) have been negative, which indicates an overall decrease in revenue over both past and upcoming quarters.
However, Groupon’s growth estimates for both this quarter and next quarter are quite optimistic at 128.9% and 87.7%, suggesting they could experience significant revenue increases compared to their current quarter results.
Noteworthy is the company’s year-on-year quarterly revenue growth, which has fallen 12.4% year-to-date to $525.35M over 12 trailing months – suggesting its revenue has been decreasing over this timeframe.
Overall, Groupon’s sales growth projection is mixed; experiencing negative growth initially and then showing potential to rebound over the long-term. Therefore, it’s essential to monitor their revenue trend and growth estimates in order to make informed investment decisions.
Equity Analysis
Groupon has experienced significant financial distress over its 12-month operating history and experienced an EPS of EUR-4.33 and negative return on equity of 567.07% during that same timeframe, suggesting it has not been profitable over this period and its return on equity has been substantially negative. These figures suggest it has not been profitable and its return on equity is far below expected levels.
Investors may interpret this to mean that a company may be experiencing difficulty in producing profits and returns for shareholders, yet other considerations must be taken into account such as growth prospects, competitive positioning and overall market conditions before making investment decisions.
Groupon may be experiencing financial challenges, yet investors must carefully consider other considerations before making investment decisions based solely on Groupon’s negative EPS and return on equity figures.
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