Groupon stock soars to 52-week high, touches $29.95

Published 02/06/2025, 14:44
Groupon stock soars to 52-week high, touches $29.95

Groupon Inc (NASDAQ:GRPN). shares have surged to a 52-week high, reaching a price level of $29.95, as investors rally behind the online marketplace. According to InvestingPro data, the stock appears overvalued at current levels, despite maintaining impressive gross profit margins of over 90%. This peak represents a significant turnaround for the company, which has seen its stock price bolstered by a remarkable 94.64% change over the past year. The stock’s momentum has been particularly strong, with a 205% surge over the past six months and an 8.9% gain just last week. The ascent to this new high underscores a period of robust performance and investor confidence, reflecting a positive response to the company’s strategic initiatives and market positioning. InvestingPro analysis reveals 14 additional investment tips for this stock, including insights on its financial health and market position.

In other recent news, Groupon Inc. reported its first-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share of $0.17, significantly above the forecasted -$0.10. The company’s revenue also exceeded projections, reaching $117.19 million compared to the anticipated $115.67 million. Despite the sale of Giftcloud in April for €15.5 million, which is expected to lower 2025 revenue and adjusted EBITDA by $6 million and $4 million respectively, Groupon has maintained its revenue and adjusted EBITDA guidance for the year. Additionally, Groupon raised its full-year billings growth guidance from 2-4% to 3-5%, reflecting confidence in its strategic initiatives.

Goldman Sachs analyst Eric Sheridan increased the firm’s price target for Groupon to $15, up from the previous $9, while maintaining a Sell rating on the shares. This adjustment follows the company’s strong Q1 performance, which included a 1.4% increase in global billings and an 11% year-over-year growth in North America Local billings. The company is focusing on platform modernization and AI integration, which are expected to enhance customer and merchant engagement. Sheridan highlighted the progress Groupon has made under its current leadership, noting improvements in its financial position and the repositioning of its core Local business. These developments indicate a stronger performance from Groupon’s core operations, despite the impact of the Giftcloud sale.

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