My Take on Groupon's Earnings Tonight (GRPN)

The following article was originally posted today on the Benzinga site earlier today: 

Kevin Riley , Benzinga Staff Writer

February 12, 2015 1:49pm Comments

On Thursday, trading expert Thomas Carr commented on Groupon Inc (NASDAQ: GRPN)'s valuation. More specifically, he discussed what to look for in the company’s guidance after it releases its Q4 earnings results.

Carr noted that "Groupon will be updating its turnaround efforts tonight and any talk of the sale of its South Korean ecommerce site, Ticket Monster, will be closely watched.”

On February 5, it was reported that Groupon was in talks to sell Ticket Monster and it may have put a $1 billion value on the site, which it purchased in November 2013 for $260 million.

While the sale of Ticket Monster may be viewed as a positive by some investors Carr said “concerns remain that [Groupon’s] current valuations simply cannot be sustained.”

As a warning example, Carr pointed to what happened to Coupons.Com Inc (NYSE: COUP) on Tuesday. The stock lost over 25 percent after a disappointing earnings result and outlook.

“I fear holders of GRPN could be looking at a similar fate tonight," Carr concluded.

Heading into its earnings release, Groupon Inc traded at $7.61, up 0.46 percent.

Latest Ratings for GRPN

Jan 2015Ascendiant CapitalUpgradesSellBuy
Jan 2015Evercore ISIUpgradesSellHold
Dec 2014Bank of AmericaUpgradesNeutralBuy

View More Analyst Ratings for GRPN

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Posted to Dr. Stoxx Options Letter on Feb 12, 2015 — 2:02 PM
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