Groupon (GRPN) Stock: Continues to Soar Post Earnings

Groupon Inc Common Stock (NASDAQ: GRPN)

Groupon is having yet another strong day in the market. This is adding to the upward movement we saw last week, when the stock gained 30%. So, what’s causing all of the excitement? Well, the company reported incredibly strong financial results for the second quarter. This is leading to opinions that the worst is finally over for the company. Today, we’ll talk about what we saw from earnings, what we’re seeing from the stock today, and what we can expect to see from GRPN moving forward.

GRPN Reports Strong Q2 Results

There’s no denying the fact that Groupon has had a rough time over the past several quarters. As the company struggled to get growth going, the stock continued to fall. However, last week, the company reported strong Q2 results. On top of that, it offered stronger than expected guidance. As a result, investors believe that the stock has hit the bottom and is going to soar from here. Here’s what we saw from the report…

  • Earnings – When it comes to earnings per share, GRPN definitely did not disappoint. During the second quarter, analysts expected that the company would generate a loss of $0.02 per share. However, the company actually reported a loss of $0.01 per share.
  • Revenue – In terms of revenue, GRPN also did very well. During the second quarter, analysts expected that the company would generate $712 million in total revenue. However, the company actually generated revenue in the amount of $756 million. This figure represents a growth rate of 2% during the second quarter.
  • Guidance – While earnings and revenue were incredibly positive, guidance took the spotlight. During the release, we learned that Groupon increased its top-line revenue guidance for the full year to between $3.0 billion and $3.1 billion. This is better than the $3.05 billion that was expected on the high end previously.

Following the strong earnings release, GRPN CEO, Rich Williams had the following to say…

I feel like we’re fighting for customers every day. I don’t feel like we’re fighting for our lives at all. We’re fighting to build a great business. We’re fighting to deliver value to shareholders and those are great fights to be part of…”

What We’re Seeing From The Stock Today

With such strong earnings results, we saw incredible movement in the value of Groupon last week. However, the stock isn’t done climbing just yet. In fact, it’s having yet another strong day in the market today. Currently (2:31), the stock is trading at $5.16 per share after a gain of $0.17 per share or 3.41% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a cautiously bullish expectation of what we can expect to see from GRPN. All in all, I’ve always been a fan of their product. However, it did need some fine tuning, and that’s exactly what we’ve seen as of late. As a result, the company is finally starting to see strong growth in revenue and exciting investors. All in all, it seems as though the company is on the right track.

Nonetheless, we are going to see a bit of an uphill battle here. Due to hard times in recent quarters, the company’s financial position could definitely be better. So, if you decide to jump into the frenzy on GRPN, make sure that you move with caution.

What Do You Think?

Where do you think GRPN is headed moving forward and why? Join the discussion in the comments below!