Groupon Stock Surges 18% In 5 Sessions: Is It A Bullish Signal?

(VIANEWS) – Groupon stock prices increased 18.81% over five sessions from EUR11.64 to EUR13.83 following five straight gains on the NASDAQ Index; Groupon’s last closing price at EUR14.30 is 12 percent less than its 52-week high of EUR16.25.

About Groupon

Groupon, Inc. is an online marketplace connecting consumers and merchants around the world, operating two distinct segments – North America and International. Offering merchants the ability to sell goods and services as well as its own first-party inventory through mobile applications and websites provides customers with an effortless shopping experience. Established in 2008 under its original name ThePoint.com Inc, and based out of Chicago Illinois.

Yearly Analysis

Based on available data, Groupon’s stock is currently trading at EUR13.83; which is lower than its 52-week high of EUR16.25 but higher than its 52-week low of EUR2.89.

Groupon anticipates its sales growth will decrease this year by 14.7% compared to last year, which indicates a drop-off. Next year is expected to bring an improvement with expected negative 1.4% sales growth projections for growth performance.

Groupon’s EBITDA, which measures its profitability, currently stands at -26.62; this negative value indicates that Groupon is experiencing losses and not producing sufficient revenues to cover expenses and debt payments.

Based on this information, Groupon’s stock may be underperforming, prompting investors to proceed with caution when investing in it. Negative sales growth and negative EBITDA indicate challenges the company may be experiencing with regard to revenue generation and profitability; further investigation and analysis must be performed prior to making an informed decision about investing in Groupon.

Technical Analysis

Groupon stock has seen an extraordinary surge, surpassing both its 50-day and 200-day moving averages by an unprecedented margin. Meanwhile, trading activity appears to have decreased considerably; last reported volume stood at only 197,538; this suggests less trading activity compared to its average volume of 1.122,060.

Over the past week, this stock has shown high levels of volatility with an average intraday variation of 5.31% and three month and quarter average volatility amplitudes of 3.41% and 4.05%, respectively.

According to the stochastic oscillator, an established method for measuring overbought and oversold conditions, Groupon stock is currently considered oversold, with readings below 20 suggesting an undervalued position that may soon experience a turnaround.

Overall, Groupon’s stock has shown signs of potential rebound through low trading activity, high volatility and oversold conditions. Investors should take note of these factors and consider taking action accordingly.

Quarter Analysis

Based on the provided data, Groupon’s sales growth for this quarter is negative 7.7% and negative 1.7% for next quarter – suggesting revenue decline for investors.

However, estimates for growth for this quarter and next are significantly higher than negative rates – at 128% and 87%, respectively. It should be remembered that these estimates and projections may not accurately represent how well the company performed over time.

As quarterly revenue growth declined 12.4% year-on-year for twelve trailing months totalling 525.35M, this may signal that revenue has been decreasing over time and should cause investors to be concerned.

Overall, investors should use this data as part of a larger analysis of Groupon’s financial performance and prospects. When making investment decisions it’s essential to take into account factors like revenue growth, profitability, and other key financial metrics as part of their consideration set.

Equity Analysis

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