Is groupon a good bet with the sky high inflation and possibility of a recession?


Never used it, so I can't comment on the user experience, but the business model seems easy enough to understand where they partner with businesses to generate leads leveraging their large userbase by offering discounts. I think with the consumer becoming more mindful about their wallet with super high inflation, they will get a lot more use right? Also their valuation isn't bad with a pe of around 5, but this isn't surprising since their growth has been declining. On the plus side they have really made an effort on going lean and are now profitable. Also insiders bought tens of millions in stock the past couple of weeks if that means anything https://www.secform4.com/insider-trading/1490281.htm

Also current valuation:

~$600m

cash on hand (which will only increase since they are profitable now):

~$500m

sumup investment stake (2.4%):

sumup is currently valued at $22.6 billion = $540m for groupon if they ever manage to realize those gains

Lastly, don't think it matters much but according to marketwatch it has 19% short interest and only 30m shares outstanding with 22m in public float.

disclaimer: I have about $10k in groupon stock at average price of < $20


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *