Groupon Inc
GRPN: XNAS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|.&S?%D$ | LOCK|CT | LOCK|!K |
Groupon Q3 Results Disappointing While Stake in SumUp May Be Monetized; Lowered FVE to $27
Groupon yet again missed expectations with its third-quarter results. The firm continues to struggle to increase both demand and supply on its platform as user count and engagement declined while inventory density remains below expectations, which further drives away users and supports our assumption that the platform lacks network effect. The couple of positive things from the third-quarter results and the earnings call was a deceleration in user loss in the international market and a slowdown in overall purchase frequency decline.
