This Week's 5 Dumbest Stock Moveshttp://www.fool.com/investing/general/2012/08/17/this-weeks-5-dumbest-stock-moves.aspx Rick Aristotle Munarriz
August 17, 2012
Stupidity is contagious. It gets us all from time to time. Even respectable companies can catch it. As I do every week, let's take a look at five dumb financial events this week that may make your head spin.
Revenue may have climbed 45% to $568.3 million over the past year, but that's actually a sequential increase of less than 2%. When you back out Groupon's direct revenue -- the gross bookings being recorded on Groupon Goods merchandise that the company is taking in -- revenue actually declined 7% sequentially.
It's safe to say that Groupon has a credibility problem with investors. The stock has shed roughly two-thirds of its value since going public late last year at $20. However, with signs pointing to a model itself that may be peaking, Groupon apparently also has a credibility problem with consumers.
2. Good luck with that, RIM
Even given away -- in the mold of Android -- it's hard to fathom too many takers. As great as the upgrade may be, Android and iOS have 83% of the smartphone market cornered. RIM has seen its market share cut roughly in half over the past year, and this isn't a market where momentum bounces back.
There may be licensing opportunities outside of smartphones and tablets. RIM has had some degree of success in licensing the QNX platform that BB10 is based on across unrelated industries in the past. RIM still faces an uphill battle in a marketplace where the malleable open-source operating system of choice -- Android -- is running away with the market.
The leading video game retailer cranked out weak quarterly results yesterday. Sales fell 11