Groupon Inc (GRPN) Stock AnalysisGRPNStock AnalysisGroupon Inc

Groupon, Inc. is a scaled two-sided marketplace that connects consumers to merchants. The Company’s marketplace is accessible through its mobile applications and its websites, which are primarily localized groupon.com sites in 13 countries. It has two segments, North America and International, and in three categories: Local, Goods and Travel. The Local category includes services from local and national merchants, and other local and national merchants, including things to do, beauty and wellness and dining, as well as other services. The Goods category includes merchandise across multiple product lines, such as electronics, sporting goods, jewelry, toys, household items and apparel. The Travel category features travel experiences at both discounted and market rates, including hotels, airfare and package deals covering both domestic and international travel. The customer can contact the merchant directly to make a travel reservation after purchasing a travel voucher from the Company. It operates in the Consumer Cyclicals sector (SERVICES-ADVERTISING AGENCIES industry).

Groupon Inc is currently priced at $19.53, which is below the analyst price target of $22 from Goldman Sachs, indicating potential upside. However, the RSI is at 28.146, suggesting the stock is oversold, which could lead to a rebound. The company has reported a significant drop in revenue growth, with a 29.19% decline over the past 20 days, and a concerning net income trend, including a loss of $0.04 per share against an expected loss of $0.08. The main risk is the high forward P/E ratio of 192.31, indicating that the stock may be overvalued relative to its earnings potential. Given these factors, it is prudent to hold rather than buy at this time.

18 analysts cover GRPN: 5 rate it Buy, 8 Hold and 5 Sell. The average price target is 35.33.