As the first-mover in the daily deals market, Groupon (NASDAQ:GRPN) created a multibillion dollar industry with a business model lucrative enough to attract plenty of competitors. Does this mean that Groupon is a good investment, though?
To help answer this question, check out our new premium report on Groupon. For a taste of what is offered in the report, below is an excerpt describing three reasons to buy and three reasons to sell Groupon.
3 reasons to buy
- Groupon's a first-mover with brand power that puts it at the top of consumers' minds when thinking of the daily deal market.
- It's working to integrate itself into local businesses through offering essential services like point-of-sale solutions and schedule management.
- The company is innovating new products and working hard to pivot into more revenue-generating ideas like Groupon Goods.
3 reasons to sell
- A shaky accounting past casts doubt on the company's ability to accurately report performance to investors.
- CEO Andrew Mason's inexperience also means investors are putting their money behind an unproven leader.
- As marketing spending decreases, growth can easily trail off as new customers dry up and returning customers spend less.
More in-depth analysis available
That was a sample of from our new premium report on Groupon. The collapsed stock may offer a great buy-in opportunity, or is a signal to get out and stay away, and our report will help you make that decision, complete with free updates on Groupon news and analysis. For your copy, click here now.
Fool contributor Dan Newman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.