Investing in Groupon
Below, you will find all the information about the company, and we will also explain in detail how to buy Groupon, the value of Groupon shares and how much a Groupon share is worth.
What is Groupon?
Groupon, Inc. is a website that offers discount coupons that can be used at local and international businesses. Its name comes from the combination of the words group and coupon.
It was founded in November 2008 in Chicago, U.S.A., then expanded to Boston, Toronto and New York. The company was created by Andrew Mason and Eric Lefkofsky, who contributed 1 million dollars to develop it.
By 2010, the company could already be used in more than 150 markets in North America and in more than 100 markets in Latin America, Asia and Europe. As a result, the company has gained some 35 million users on its platform to date.
The company has worldwide operations, obtained several services similar to the ones it offers and then added them or the name by Groupon. Some of the ones I buy are: MyCityDeal, Darberry.ru, Qpod.jp, Beeconomic.com, Sosasta.com, uBuyiBuy and many more.
It is worth mentioning that by obtaining the uBuyiBuy domain name, the company was able to expand its activities to Taiwan, the Philippines, Singapore and Hong Kong. Currently the company has a mobile application with which you can buy from devices with Android operating system or those with iOS system.
Why buy Groupon stock?
Groupon was first listed on the New York Stock Exchange in November 2011, rising more than 50%. That same day it began trading on the Groupon Nasdaq stock index, under the acronym GRPN. There Groupon gained volume on the exchange and soared 51% higher where each Groupon share was worth around $30.23.
Thanks to its initial public offering, it raised $700 million, divided among 35 million Groupon class A shares. Previously the company had planned for each share to be worth between $16 and $18, but finally on the NYSE it was worth $20. All this resulted in the company being valued at almost $13 million, but still not making a profit.
Then in 2010 the company lost more than $400 million, which called into question what its business model really is. Some time later it managed to obtain 700 million in revenue, bringing the total value of the company to 12 billion dollars. After that, Groupon’s growth gradually declined and so did the value of its shares.
In 2013, all the pressure of its losses fell on founder Andrew so the board fired him and from then on, the company was left in Eric’s hands. Then in 2018, it was gaining momentum again, earning 0.10% profit per Groupon share. Moreover, in that year they managed to acquire almost $800 million in sales, exceeding their expectation of $780 million.
Buying Groupon Shares: Advantages
- The company has strong subsidiaries: Some of them are, Snapsaves, Ideeli, PrettyQuick LLC, CommerceInterface, Inc, Ludic Labs and many more.
- The company can be used by other companies as a marketing strategy: That is, a supermarket can start working together with Groupon and attract more customers who will keep coming back after their first purchase. This will help both companies equally.
- Offers services that have from 30% to 90% discount: The business or company that decides to work with Groupon can choose the number of coupons it will give and how much discount each one will have.
- The price of Groupon shares is lower than those of its competitors: Currently each Groupon share is priced at just over $34.
Buying Groupon Shares: Disadvantages
- The company often does not have good sales: Before buying Groupon shares, it is advisable that you study which is the best time to buy and which is the best time to sell.
- It does not help to increase sales, but only to make known the brand or product to be sold.
When it comes to buying shares in the stock market, there are many ways to do it. One of them is through contracts for difference, these can be easily executed from a stock broker. They work by negotiating within the market of your preference, without the need to pay any commission.
Within the network there are many brokers, but the safest and most recommended for trading are: Plus500, Admiral Markets, IQ Option, eToro, ForexTB and Avatrade. Below we will show you how to trade Groupon through the eToro broker.
- Create an account on the platform by filling out a form with your data and then log in.
- Transfer the amount to be invested and in the search bar enter the name of the company.
- When you choose the stock, press buy.
- Now choose the desired amount, press invest and that’s it! You now have Groupon shares in your account.
There is also another way to invest through this platform, doing Copy Trending. It is in charge of copying the financial strategy of the most successful investors of the broker, in order to enjoy the same income as them. To invest through this method you only have to follow the following steps:
- Log in to your account.
- Use the tool to search for people and choose the inverter to copy, you can filter the results if you wish.
- When you choose the investor of your choice, you will see all the information of his profile.
- Then you only have to press the copy button, choose the amount to invest and in minutes you will have the Groupon stocks you have purchased in your profile.
If you are not very sure about making this investment you can try trading with virtual money: Some brokers have the option to make ”test” investments, using this type of currency you don’t lose much and you learn everything before manipulating your money by buying Groupon stock at a considerable price.