First to Die: Groupon or Zynga?

The following video is from Wednesday's Investor Beat, in which host Chris Hill and analysts Austin Smith and Eric Bleeker dissect the hardest-hitting investing stories of the day.

Shares of daily deal site Groupon (NASDAQ: GRPN  ) and social gaming company Zynga (NASDAQ: ZNGA  ) have had a rough 12 months. Which stock is in more trouble? In this installment of Investor Beat, our analysts discuss the future of the embattled companies.

Groupon's story is one of the American Dream. The company went from 400 subscribers in 2008 to over 150 million today. While this story is definitely one of triumph on a business level, its success most certainly hasn't been shared by investors. Company shares have fallen over 80% over the past year and left investors panicked. Will this company live out its American Dream or leave shareholders empty-handed? In order to answer that question, our analyst has compiled a premium research report with in-depth analysis on whether you should buy or sell Groupon right now and why. Simply click here now to get started.

The relevant video segment can be found between 2:49 and 4:00.


Read/Post Comments (7) | Recommend This Article (5)

Comments from our Foolish Readers

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  • Report this Comment On March 07, 2013, at 8:57 AM, Richieee wrote:

    On ZNGA Let me get this straight 1.3 Billion in cash

    1.5 in assets 800 million shares out cash value

    around....$3,75 they are going broke with gambling on line and earaning around gross 899 Millilion a year

    I wish I was this broke.

  • Report this Comment On March 07, 2013, at 10:00 AM, Retaility wrote:

    Groupon. Zynga has online gambling revenues to look forward to in a couple of years. Not much Groupon can do broaden market besides reducing the cut that they take from the merchants, and earnings are already dismal

  • Report this Comment On March 07, 2013, at 11:01 AM, GudDanMan wrote:

    I have never seen this much negativity towards a stock like zynga from the Motley Fool, when there is a lot of upside potential. I've seen quotes like "Game Over", "Die", "Dead" etc. The same was true of Netflix and a few others out there. Groupon is a dead man walking and really has no moat, no plans for the future, and its and a weak brand at best. Meanwhile Zynga has millions of users, and in particular when the Motley Fool called the end for them when the Facebook deal ended, it really was the beginning, because on Mobile, I see 10+ Zynga apps, but only one Facebook app on itunes. In the end, we may all be fools, because numbers can lie, but one thing is true, whenever I walk through airports, malls and supermarkets, I always see a person playing a Zynga game on their phone. That is my best judge of the future of Zynga, when people show me they are using it, a lot.

  • Report this Comment On March 07, 2013, at 1:26 PM, allworld23 wrote:

    I can understand the Motley Fool taking a position against a company, but this is a little "over the top". The Motley Fool is trying to bury Zynga for what reason? If the Motley Fool could explain this, "lynching" of Zynga, with a justified reason, I would be all ears for the Motley Fool.

    Otherwise, whomever is the editor at the Motley Fool needs to "do his job". This an unwarranted attack on a publicly traded company. Shame on you Motley Fool....

  • Report this Comment On March 07, 2013, at 5:44 PM, z06forum wrote:

    Clear USE us the Free press to side false sediment of a publicy traded company for personal gains or the personal gains of your cronies...

    could it be more obvious or are you just desparate to get your buddy's short position to profitability?

  • Report this Comment On March 08, 2013, at 12:46 AM, kashif777 wrote:

    Groupon can be resurrected if the model evolves to include more social interactivity. The main reason FB is the most-visited website is because people want to look at their own face and the pictures of others near to them. Groupon should allow users to upload a profile picture and pictures of their Groupon-sponsored outings. If we see more user-input on Groupon, we will want to go there over and over. It's affirming to one's ego, a kind of anchor that validates one's existence - like gazing in the mirror. Also, pics and comments on places visited via Groupons will ensure more merchant retention through a feedback loop. If FB is moving into coupons, why can't Groupon allow social interactivity? More mirror-gazing opportunity means more time spent on the site, which leads to more sales, and a feedback system, increasing the power of the Groupon subculture.

  • Report this Comment On March 08, 2013, at 9:22 AM, Thejokesonyou666 wrote:

    When are people going to wake up and realize the fools play the market short and long. Does that answer the attack on ZNGA question?

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