Groupon Inc (NASDAQ:GRPN) Stock Struggles To Hold On To Its Value


Dallas, Texas 10/22/2013 (Financialstrend) – Ever since the U.S. Government shut down came into effect this month the stock of this $7.2 billion internet player Groupon Inc (NASDAQ:GRPN) has slid down by 16%. Even after the budget logjam saw a temporary resolution, the stock has seen its market value shrink by 3.7%. This increasing investor apathy with the stock can be ascribed to its peer eBay struggling to impress the markets and its share holders. The online retailer and mail order company has seen its valuation getting shaved by close to 3.9% when its CEO gave sluggish forecast for the holiday season. Readers should note that the time window between Thanks giving holidays and end of the year revelry during Xmas is the prime selling time for retailers, both online and traditional ones. Some of these majors manage to rack up close to 35% of their entire fiscal year sales in these 60 odd days of trading.

Long term investors of Groupon would have seen their investments in the stock gain by 122% in the past 12 months. They would be hoping that the 3Q earnings will give the market a sense of how it will fare in the holiday season sales. Analysts tracking the results of this online retailer are expecting the firm to report earnings per share of $0.01. They expect quarterly revenues to come in at $616 million.

 In the second quarter ended June 30, the company posted a loss per share of 1 cent on revenue of $608.7 million.  The revenue was up 7% from its previous quarter. Its sales from North American market went up by 45% in the past quarter and investors would be hoping to see a repeat of the same in 3Q.

During close of business on October 21, the stock had ended at $10.6 per share down 0.47% from its previous day close.