Amazon's (AMZN) 'Social' Holding Might Hint at More Upside for Groupon (GRPN)
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Uh oh for Groupon?
According to a filing with the U.S. Securities and Exchange Commission, Amazon (Nasdaq: AMZN) is taking down the value of LivingSocial following the unit's latest quarterly results.
Amazon -- which holds a 29 percent stake in LivingSocial -- reported the company swung from net income of $156 million in the prior quarter to a loss of $93 million in the second quarter. Amazon said the book value on its LivingSocial holdings fell from $298 million in the prior quarter to $271 million.
Using the value Amazon gave to extrapolate, LivingSocial's total book value fell $93 million (not a coincidence, we're sure) from $1.028 billion in the first quarter to about $935 million in the last quarter.
Despite the drop in value, revenue at LivingSocial improved 26 percent from $110 million the first quarter to $138 million. By comparison, LivingSocial reported $245 million in revs for all of 2011, leading to a total net loss of $558 million.
While lower book value is never a positive thing, the news might be good for Groupon (Nasdaq: GRPN), as it shows "social discounts" still have some muster behind them. As for LivingSocial, not much was given in terms of color on the quarter -- just a few simple lines of numbers -- so more analysis can't yet be made.
Groupon shares are up 9 percent on the session, possibly on the news. The company is expected to report second-quarter results on August 13th, with the Street looking for EPS of 3 cents on revs of $576.8 million.
According to a filing with the U.S. Securities and Exchange Commission, Amazon (Nasdaq: AMZN) is taking down the value of LivingSocial following the unit's latest quarterly results.
Amazon -- which holds a 29 percent stake in LivingSocial -- reported the company swung from net income of $156 million in the prior quarter to a loss of $93 million in the second quarter. Amazon said the book value on its LivingSocial holdings fell from $298 million in the prior quarter to $271 million.
Using the value Amazon gave to extrapolate, LivingSocial's total book value fell $93 million (not a coincidence, we're sure) from $1.028 billion in the first quarter to about $935 million in the last quarter.
Despite the drop in value, revenue at LivingSocial improved 26 percent from $110 million the first quarter to $138 million. By comparison, LivingSocial reported $245 million in revs for all of 2011, leading to a total net loss of $558 million.
While lower book value is never a positive thing, the news might be good for Groupon (Nasdaq: GRPN), as it shows "social discounts" still have some muster behind them. As for LivingSocial, not much was given in terms of color on the quarter -- just a few simple lines of numbers -- so more analysis can't yet be made.
Groupon shares are up 9 percent on the session, possibly on the news. The company is expected to report second-quarter results on August 13th, with the Street looking for EPS of 3 cents on revs of $576.8 million.
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