Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



What to Make of Groupon's Recent Rally?

Groupon (Nasdaq: GRPN  ) spiked 10% on Wednesday due to news that it's rolling out a mobile payment service. Still, since going public, the company has lost 70% of its overall value — and, until yesterday, that number had been at 80% for some time.

In a recent independent survey, only 16% of Groupon customers rated themselves as "very satisfied," with 53% "satisfied." Those numbers aren't impressive, and merchants and business owners are even less pleased with the service. It seems that Groupon deals simply don't bring in high-quality customers -- they tend to be one-timers who spend less and aren't as loyal, and are basically in it only for the deal. With both customers and merchants largely dissatisfied, it's another sign that Groupon's business model is severely flawed at its core. The company's new mobile payment service won't be enough to save it in the long run. 


If you're a millionaire, you probably aren't personally familiar with services like Groupon's. If you're part of the remaining 99%, though, our new free report highlights three less-than-luxurious stocks that the 1% may be overlooking. Click here to read it now.

Andrew Tonner has no positions in the stocks mentioned above. You can follow Andrew and all his writing on Twitter at @Andrew TonnerAnand Chokkavelu has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2025998, ~/Articles/ArticleHandler.aspx, 10/28/2016 12:30:04 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,241.42 71.74 0.39%
S&P 500 2,139.12 6.08 0.29%
NASD 5,224.29 8.31 0.16%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/28/2016 11:59 AM
GRPN $4.17 Up +0.07 +1.71%
Groupon CAPS Rating: *