Groupon Is Flailing

Shares of the daily deals website Groupon (NASDAQ: GRPN  ) pulled back hard today, down more than 20% after the company reported a loss for Q4, and guided lower than expectations for the coming first quarter. Is this cratering temporary, or is this a business that investors should see as fundamentally broken?

In this segment from Friday's Investor Beat, host Chris Hill and Motley Fool analyst Jason Moser take a look at Groupon and its business model. With competition coming from Living Social and other deal providers in this space, Jason sees no real competitive advantage for the company. While it is making a concerted effort to dramatically change its focus and business model toward becoming a massive international hub for all things e-commerce, Jason sees big problems there, too, namely, other e-commerce giants that already have a huge head start. While the stock may look cheap after today's big pullback, Jason reminds investors that cheap alone does not an investment thesis make.

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  • Report this Comment On February 23, 2014, at 1:42 PM, etbob1 wrote:

    You guys recommend the stock, then you blast it. Then you come back and try to undo the damage. That's the problem with no editorial control over your contributors, total confusion to the reader.

  • Report this Comment On February 25, 2014, at 8:20 AM, jimbjuneau wrote:

    etbot1 nails it.

    MF is the Jim Cramer of socialized stock commentary - how about some editorial control as etbot1 suggests.

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