Groupon Buys LivingSocial, Deal Site Once Valued at $6 Billion
- Author: Zachary Reyes Nov 04, 2016,
Nov 04, 2016, 3:45
Groupon, Inc. (NASDAQ:GRPN) now has P/E (Price to Earnings) ratio of 0 while the company's industry has 27.16 P/E and the sector P/E is 27.51. Groupon shares plunged 22 percent to $4.1 at Thursday's close.
On the other hand, negative surprises can suggest a company has issues the analysts don't completely know.
The company said the deal is expected to close by early November, subject to "satisfaction of customary closing conditions". The market capitalization of the company is at $2.36 Billion.
On 07/27/2016, the stock reported the EPS of $-0.01 where Analysts were projecting the EPS to be $-0.02 showing a difference of $0.01. The consensus estimates called for a net loss of $0.02 per share on revenue of $707.8 million. Groupon Inc (NASDAQ:GRPN) shares were trading -30.98% below from the 52-week high mark of $5.94 and +90.70% above from the 52-week bottom of $2.15. A long promised IPO never came off, partly due to the way Groupon's own IPO unfolded as the stock lost much of its value. The shares were sold at an average price of $5.81, for a total value of $116,200.00.
Groupon, Inc. (NASDAQ:GRPN) will report/reported its Earnings on Wednesday 26 Oct (2 days ago). The disclosure for this sale can be found here. Chicago Equity Partners LLC now owns 1,379,525 shares of the coupon company's stock worth $7,105,000 after buying an additional 1,363,915 shares during the last quarter.
A number of large investors have recently modified their holdings of GRPN. Concourse Capital Management LLC purchased a new stake in shares of Groupon during the second quarter valued at $104,000.
Groupon hasn't been immune to the boom-and-bust cycle of the inflated daily deals market, laying off almost 10 percent of its workforce previous year and seeing its initial public valuation drop from $16 billion to $3 billion. Finally, Amalgamated Bank raised its position in shares of Groupon by 9.8% in the second quarter.
While assigning multibillion worth to a company that makes little actual cash - or even loses money - might seem insane to the layperson, such practices are part and parcel in Silicon Valley venture capital, where investors oftentimes plunge hundreds of millions into internet startups for years before seeing any dividends. North America billings grew 6 percent, but Europe, the Middle East and Africa posted a 10 percent decline, and billings from the rest of the world dropped 24 percent.