Did Groupon Just Become a Buy?

Will Andrew Mason be remembered for his graceful exit? He's looking good so far. In a week in which Groupon's (NASDAQ: GRPN  ) board fired him as CEO, the stock ended end up more than 7%, enjoying one of its best rallies since the company's November 2011 IPO.

It's been mostly downhill since thanks to unsustainable merchant terms, increasing competition from LivingSocial, and Google's (NASDAQ: GOOGL  ) Offers service, which could become even more formidable in the face of the search king's positioning of Google+ as a platform for logging into mobile apps. Think of it as a Foursquare alternative: Check in, receive an offer.

Does Mason's departure come too late? Is a shift in strategy required? The Motley Fool's Alison Southwick asks Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova for his perspective in the following video. Please watch, and then leave a comment to let us know what you think.

For further analysis, try our newest premium research report in which we dissect Groupon's rise and fall and tell you whether the stock deserves a place in your portfolio. Access your report now by clicking here.


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  • Report this Comment On March 09, 2013, at 10:42 PM, kashif777 wrote:

    Groupon must make the move to social networking.

    Why, ask yourself, do people spend more time on FB than any other site? The answer is key to Groupon's evolution into success. Faces. Pictures of users, which everyone likes to see. This mirror-gazing, a basic human conceit, ensures FB users will log in time and time again. From the central reference of self grows a network of interests, friends etc.

    Since Groupon is already campy, it could easily allow users to upload profile pics. From there, it could request feedback on deals. A Groupon locker, for example, could become a rich repository of data for both merchants and consumers. Each user might add pics of Groupon getaways or restaurant outings, or sports events, etc. Add to this comments and you have a vast field of user-generated inputs which can be logged, sorted and harvested by the business.

    Why will this succeed? Look at FB. People are vain. We want to see our own faces, we want to read and reread out own comments, and the responses they engender.

    If Groupon moves into social networking, people will spend much, much more time on the site. More time means more sales.

    If FB can do coupons, Groupon can and should do, faces.

    That's my 2 cents...

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