Dallas, Texas 12/29/2014 (FINANCIALSTRENDS) – Groupon Inc (NASDAQ:GRPN) has delivered more than 8% returns through December, underscoring investor confidence in higher consumer spending during the 2014 holiday season. More recently, the company also announced positive outlook amid the expansion opportunities in the fashion and apparel marketplace. Chief executive of hedge fund Omega Advisors, Leon Cooperman, also noted that the stock is highly undervalued.
While the recent gains point at expected recovery of Groupon’s business, the stock has plunged over 30% year-to-date amid increasing competition in the online local commerce marketplaces. Currently, it is trading about 35% below its 52-week high of $12.42.
Groupon Inc (NASDAQ:GRPN)’s ideel has seen strong demand during the Black Friday weekend and through December, pointing opportunities of growth and expansion. The company acquired ideel earlier this year, which hosts an online and mobile fashion and lifestyle destination http://www.ideel.com/.
Lisa Kennedy, president of ideel, said that the business has seen a great response from customers in 2014. Ideel has expanded its offers to deliver even more leading brands and more and more shopper are coming to its website and mobile app to secure huge savings on curated selection of the latest fashion trends.
Since its acquisition, ideel is expanding its offerings in apparel, shoes and home décor to become the fastest growing flash sale apparel sites in North America. It has witnessed 400% surge in the number of curated events, campaigns and branded sales since the end of first quarter.
Hedge Fund Comment
Last week, Cooperman told cable television network CNBC that Groupon Inc (NASDAQ:GRPN) is worth up to 50% more than its current stock price. He expressed that the company’s business is turning around and the stock seems mispriced.
The remarks certainly underscored the current as well as future growth opportunities underlying Groupon’s businesses coupled with strong 2014 holiday season.