GRPN

Groupon Inc

TMT, Consumer


Presented:01/26/2018
Price:$5.58
Cap:$3.16B
Current Price:$10.76
Cap:$0.43B

Presented

Date01/26/2018
Price$5.58
Market Cap$3.16B
Ent Value$2.54B
P/E RatioN/A
Book Value$0.34
Div Yield0%
Shares O/S566.67M
Ave Daily Vol8,731,337
Short Int12.72%

Current

Price$10.76
Market Cap$0.43B
Groupon, Inc. engages in the operation of online local commerce marketplace that connects merchants to consumers by offering goods and services at a discount. It operates through the following business segments: North America, EMEA, and Rest of World. The North America segment comprises of the United States and Canada. The EMEA segment covers Europe, the Middle East, and Africa. The Rest of World segment involves international operations. It offers goods and services under the Local Deals, Groupon Goods, and Groupon Getaways categories. The company was founded by Andrew D. Mason, Eric Paul Lefkofsky, and Bradley A. Keywell on January 15, 2008 and is headquartered in Chicago, IL.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), ANGI Homeservices Inc (ANGI), Groupon Inc (GRPN), IAC/InterActiveCorp (IAC), JD.com (JD), Match Group Inc (MTCH), Tencent Holdings Ltd (700 HK), Vipshop Holdings Ltd (VIPS)

Highlights

The presenter is long Groupon (GRPN) after watching the company, and stock, for “a while”. He became more “intrigued” with the story in March 2017, when Joey Levin (IAC’s CEO) joined the Board of Directors, and more recently bought stock because he views the risk/ reward as favorable at ~$5.50. In addition, Groupon+ appears to be causing an issue for Street analysts and investors alike, as the usual big data services that report on trends for companies such as Groupon can’t seem to get an accurate read on trends by scraping the site in the traditional way now that card-linked transactions are growing as a percentage of sales. If management’s cost containment strategy continues to boost profitability, EBITDA could reach the presenter’s $305MM 2018 target (versus the Street at $275MM). With growth from that level, the stock could be worth at least $7.50 in 12 - 18 months (assuming a 13x multiple to 2019 EBITDA).

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Idea Discussion

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