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Why Groupon Stock Is Rising Today

By Rich Duprey – Jun 19, 2020 at 11:21AM

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The discount offers platform has been buffeted by changing investor sentiment on the economy.

What happened

Shares of Groupon (GRPN 2.23%) were trading 6.5% higher Friday morning as fresh hopes for an economic recovery boosted the market.

So what

The discount marketplace has been battered by the COVID-19 pandemic, and though its stock has more than doubled from the lows it hit at the onset, shares remain 70% below the highs they hit shortly before the coronavirus outbreak struck.

Man and arrow point upwards

Image source: Getty Images.

Getting retailers and restaurants up and running again will go a long way toward improving Groupon's own business. Despite reporting better-than-expected earnings earlier this week, the discounter has been subject to the whims of changing investor emotions on where the economy is heading.

Now what

Groupon's stock is likely going to suffer some volatile swings as the country rises from the ashes of this pandemic. As states relax restrictions on business, allowing them to operate freely again, they provide hope that Groupon's business can improve. Conversely, surges in new cases or elevated levels of unemployment will dishearten the outlook for the discount platform.

Helping business get back on its feet by luring customers in with discounted offers should benefit Groupon as well as restaurants and retailers that rely on it.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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