Poppycock! Groupon (GRPN) Isn't Going Under; Investors Should Pay Some Attention, However...
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Groupon (Nasdaq: GRPN) shares ended 6.5 percent lower Wednesday, but that doesn't mean the group discount deals company is going under anytime soon.
According to AllThingsD, Groupon is just about as strong as ever.
With its latest filing, Groupon said it had $1.2 billion of cash and was cash-flow positive, with the biggest liability on its books being Merchant Payables. Merchant Payables is running less than $600 million.
Groupon could also raise more capital if needed, though it likely doesn't want or need to.
Some of the near-term issues AllThingsD cites a Citi note today on, include:
Investors might also keep an eye on Chairman Eric Lefkofsky, who said he would be scaling-back his involvement in day-to-day operations to spend more time with his venture capital business. New executive additions might add some near-term volatility to shares as investors become more comfortable with changes at the top.
Groupon is lower in after-hours trading.
According to AllThingsD, Groupon is just about as strong as ever.
With its latest filing, Groupon said it had $1.2 billion of cash and was cash-flow positive, with the biggest liability on its books being Merchant Payables. Merchant Payables is running less than $600 million.
Groupon could also raise more capital if needed, though it likely doesn't want or need to.
Some of the near-term issues AllThingsD cites a Citi note today on, include:
- The capability for sustained U.S. growth. Last quarter, North American revs rose 33 percent and Citi is bullish on the prospect of growth continuing.
- Groupon should also be able to scale its incremental margins -- currently at over 50 percent the last two quarters -- into its goal of over 30 percent of operating margins over the long term.
- The addition of a new CFO recently should appease investors fretting over Groupon's accounting issues.
Investors might also keep an eye on Chairman Eric Lefkofsky, who said he would be scaling-back his involvement in day-to-day operations to spend more time with his venture capital business. New executive additions might add some near-term volatility to shares as investors become more comfortable with changes at the top.
Groupon is lower in after-hours trading.
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