Groupon stock rose 12 percent on Friday: crash temporarily alleviate fearsPublished: 15:52:56 June 17,2013 Views: 185
U.S. stocks trading on Friday, Groupon shares rose 12%
Lead: foreign media wrote today that the United States buy giant Groupon recently due to huge marketing investment, business lacks depth, by Wall Street analysts generally look bad, seems to be the brink of collapse, but on Friday, Deutsche Bank recommends investors buy Groupon shares, the company's share price rallied 12% in one fell swoop eliminate investor concerns.
The following is the text of the article:
Swept away the haze
Not long ago, Groupon was considered the verge of collapse. Critics said, Groupon huge marketing investment, while the lack of an effective means to protect their own business.
But things have changed in the Deutsche Bank released a study report, recommends investors buy the stock after Groupon, Groupon shares closed at $ 7(http://www.best-news.us/).65 on Friday, compared with the previous trading day rose 12 percent in the past six months, Groupon shares steady recovery phase than last November's lowest point in history, has turned nearly tripled to Groupon collapse fears temporarily vanished.
However, if you want to return to high growth path past, Groupon still has a long way to go(Technology News http://www.best-news.us/). Groupon's IPO (initial public offering) issue price of $ 20, its pre-revenue expected six times, and then not yet profitable, therefore, such a high issue price move is considered to be absurd, but this has always been to buy the giant vitality known.
When Groupon listing document submitted in 2011 when the company's marketing costs account for over 50% of revenues, while the first quarter of this year, this proportion dropped to 8%. Marketing investment has shrunk dramatically on Groupon's business growth with to the adverse effects, but company executives did not cause concern Bale.
In addition, Groupon does face many obstacles to development, including a huge user base and more than 4,000 people worldwide sales team. Obviously, labor in determining a company's competitiveness, the importance of the difficult than the technology, but as a Groupon at the most local advertising terrible long-term rival, Google also hope that businesses buy their own advertising. fact, most businesses need help, but as time goes on, the cooperation with them will eventually have strategic significance.
Groupon's challenge is, the ability to maintain rapid growth in the same time, to achieve long-term profitability targets due to the poor performance of foreign operations, Groupon revenue long-term stagnation. Nevertheless, Groupon business model as long as the right to make some adjustments, which enhance the customer value, then there might be revitalized, re-embark on the road of rapid growth.
Today, Groupon buy discount extended its activities in the time spent on the site, so that whenever the user wishes to buy, can Groupon landing sites, participate in their favorite products and services to buy, compared to the past long-term dependence on electronic mail bombardment, this means fewer users.
Groupon has its 'indirect' business (mainly buy) to develop a long-term operating margin target of 25-30 percent, according to U.S. investment firm Evercore Partners estimate, Groupon 'indirect' business last year's operating margin was 15% As to product sales of the 'direct' business, Groupon's operating margin target of 8%, while last year is estimated to be -18%.
Stock Price Trend
Whether it is 'direct' business, or 'indirect' business, these are ambitious goals, but assume Groupon in 2016 to achieve the above goals, while still maintaining an average annual sales growth of 12%, then the resulting free cash flow indicates, Groupon will be $ 9.70 when the stock price.
Groupon Friday's closing price which is more than 27% higher, although it seems pretty good, but it must be guaranteed in all business areas have achieved positive progress in order to direct business, for example, Evercore Partners is expected that the sales of businesses in Groupon 2013 the proportion will reach 35%. competitors like Amazon, although unlike Groupon buy products made for careful planning, but many of the products it sells the same with the Groupon, Groupon and delivery time is unmatched.
Assuming Groupon did not achieve these operating margin targets, but business is progressing fairly smoothly, in 2016, revenues to grow at a rate of 8% per annum, buy business, profit margins reached 20%, while the direct marketing business, profit margins of 4 % Accordingly, estimates, Groupon's share price will be $ 8 will only compared with last Friday's closing price is higher by a little something, ie, Groupon's discount model will still continue to exist, but the stock does not have too big improvement. (Qing Chen)
www.best-news.us Best News, Latest News and Current News from best-news.us. Latest Current News: U.S., China, World, Entertainment, Health, Finance, Business, echnology, Travel, Politics, Sports.
- 11:22 August 9,2013Malicious like viruses accounted for half of 27% ranks first in safety
- 11:09 August 9,2013Affordable home Sony HDR-CX390E Set Promotion 3221
- 10:59 August 9,2013PS Tip: 5 steps to teach you create art "leaked color"
- 10:53 August 9,2013Jiangsu Taizhou Unicom optimize customer service manager team greet 4G
- 10:50 August 9,2013Tanabata Allure Juxian 5-inch 1080p Nikai En N6 77 million was love buying
- International high school teacher: alert students of the six black intermediary fabricate lies
- Domestic tourism e-commerce broken red blue smoke
- Summer Play Creativity: Guangzhou fertile sister to accompany children into the community over the summer!
- "I am a nutritionist" contest HEALTH help professional training
- Dr. invented "artifact" shows you how far away from the bus (Figure)
- How long into the final four? Ding Junhui 40 days before Chinese derby ranking tournament finals
- Hamilton: Racing problems lead to runaway fourth start seriously affect the title race
- Paris Matches Germany bitterly await final reversal Federer Nadal advanced rate
- 2013 Global CEO Development Conference Schedule
- Ministry of Public Security cracked the case of large manufacturing and selling fake drugs seized 16,000 bottles of counterfeit drugs
- Premiership Jingxian super amazing goal 13 seconds break! Or goalkeeper Jin!
- Ding Junhui: Fu brother crushed the teeth also I did not want my advantage
- Super trailer -15:35 live video can be riding on three teams in the relegation Guoan VS
- Shandong Academy of Sciences and checking Bianzhengbiangai promote educational practice to achieve tangible results
- Jinan thermoelectric "Beiqi West Line" Start sending steam heating pipe onlookers along the steaming Do
- Xia Jinming towards two graves stolen goods Minister: Villagers shift guard 7 months
- LELING girl finds were married four years ago Liangshan be asked to do "divorce"
- Yunnan Baoshan Longling occurred 3.0 earthquake focal depth of 10 km
- India's two train crash caused eight deaths
- Mom strong opponents singles guide - Winter Olympics figure skating champions Shen Xue new role
- Vehicles stranded harbor crack problem Haikou intends to implement the four emergency plan
- Three institutions held mid-year report exposure
- Sichuan Arts exam 2014 set in advance, said pressure undergraduate batch of candidates
- Premiership simulate the final standings: Arsenal, Chelsea pressure Manchester City won four iron
- Key special series will enjoy the political benefits
- Wall Enhanced Yield regularly open zhaiji issued from August 8
- Large data or video content producers will decide
- The central parity of RMB against the U.S. dollar rising for four
- Zhu Yawen "ZhenYangMen down" very enjoyable to play Beijing menfolk
- Newsflash: Great Wall Television backdoor listing Jiangsu Hongbao resumption limit