1-Star Stocks Poised to Plunge: Groupon?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, daily deal specialist Groupon (GRPN 2.94%) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Groupon's business and see what CAPS investors are saying about the stock right now.

Groupon facts

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 84% of the 805 members who have rated Groupon believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those Fools, btmn, succinctly summed up the bear case for our community:

Groupon has a product whose innate value is questionable, a subscriber base experiencing fatigue, a cost structure that is unsustainable, a management team that doesn't instill confidence, and a brand that is becoming synonymous with over-hyped IPOs. All this baggage will be a drag on the company's ability to attract talent (the lifeblood of a tech company) and investors (who ultimately set the price of the company's stock). Even if the company manages to come up with a new strategy that has the potential for profits, it's doubtful that (1) they'll be capable of execution or (2) that the market will have enough patience to let them pivot in a meaningful way.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.