(VIANEWS) – Groupon Shares Increase by 26.73% Over Ten Sessions While NASDAQ Slips by 1.63%
Groupon (NASDAQ: GRPN) shares have experienced an exceptional 26.73% gain over 10 sessions, closing on Monday at EUR12.09 as against EUR9.54 at its initial valuation point. This represents a notable turnaround from its five consecutive sessions of losses prior to Monday.
Even with Groupon’s impressive performance, the NASDAQ index experienced a decline of 1.63% to EUR14,071.98, following an upward trend and after previous day gains. This drop comes on top of gains seen previously.
Groupon stock’s last closing price of EUR11.90 represents a 26.77% discount from its 52-week high of EUR16.25, suggesting it has yet to reach its maximum potential over the past year.
Overall, Groupon’s recent rise may be seen as positive news by investors; however, it is wise to also take into account larger market trends and individual company performance when making investment decisions.
About Groupon
Groupon is an online marketplace connecting consumers with merchants in North America and International markets, operating both domestically and abroad. Groupon sells goods and services on behalf of third-party merchants as well as first-party inventory directly. Serving customers via mobile apps and websites, Groupon was previously known as ThePoint.com before changing in October 2008. Established in 2008 and based in Chicago Illinois.
Yearly Analysis
Data suggests that Groupon’s stock is currently underperforming its 52-week high, yet outperforming its 52-week low. Negative sales growth projections for both this year and next suggest possible difficulties in terms of revenue generation; however, an EBITDA score of 1.1 indicates positive earnings before accounting for interest, taxes, depreciation, and amortization expenses.
Investors should take note that negative sales growth predictions and current underperformance of Groupon stock could indicate potential risks; however, positive EBITDA suggests the company is still producing profits. Therefore, investors need to conduct further research and analysis in order to assess whether Groupon’s stock is appropriate for their portfolio according to risk tolerance and investment goals.
Technical Analysis
Groupon Inc.’s (NASDAQ: GRPN) stock has experienced mixed performance over the past several months. While trading below its 50-day moving average of EUR12.16 indicates short-term bearishness, it remains higher than its 200-day moving average of EUR7.95 suggesting long-term bullishness.
Today’s volume was 73.82% lower than its average volume of 1499120; thus signalling an indication of indecisiveness among investors and price action being affected by an absence of significant buying or selling pressure.
Groupon stock has demonstrated a significant decrease in volatility over the last week, month and quarter; its intraday variation averages have shown an upward trend, reaching levels as high as 2.833% per day over this time frame; 5.911% average volatility was highest amplitude among these three periods, and 5.74% during those last quarters respectively.
The stochastic oscillator, an indicator used to track overbought and oversold conditions, has identified Groupon stock as oversold (=20), suggesting it is due for an upward move and investors may wish to invest at these current prices.
Overall, Groupon’s stock is currently trading in a narrow range; investors should carefully monitor its price action and volume to gain an idea of its direction.
Quarter Analysis
Based on this data, Groupon’s sales growth for the current quarter is negative 9.4% while growth estimates for its next quarter is estimated to be 113.2% despite negative sales growth this quarter. While year-on-year quarterly revenue growth has decreased by 12.4%; this suggests revenue has been declining compared to same time last year and investors should keep an eye on whether Groupon can reverse this trend and maintain positive growth going forward.
Equity Analysis
Based on this data, Groupon’s trailing twelve months EPS stands at EUR-4.5, representing negative earnings per share for its shareholders. Furthermore, its return on equity (ROE) for those twelve trailing months was negative -567.07% which indicates it wasn’t producing sufficient returns from investments made by shareholders.
Investors should exercise extreme caution when investing in Groupon due to its negative profitability metrics. Before making any decisions regarding Groupon investments, it is imperative that investors thoroughly research its financial performance, future prospects and overall market conditions before making their own informed choices.
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