Why Groupon can survive and live well

Tencent

technology news (Zhang He) August 25th Beijing time news, financial website The Motley Fool writer Chad · Brand (Chad Brand) recently wrote that Groupon shares recently even low, because many Wall Street analysts are not optimistic about the group purchase business model, group purchase activities for cooperative businesses think more harm than good. But Brand believes that Groupon’s business model is feasible, especially for hotels such as cinemas, fixed cost is very high, can be turned into the lower industry, Groupon can bring high investment returns for the industry of business cooperation.

Groupon shares hit a new low of $4.5 on Friday, compared with $20 in November 2011, when the stock market fell $77.5%, compared with the first day of listing the highest price of $31 is down by 85%. Investment bank Evercore analyst Ken · (Ken Sena); Sheena Groupon stock rating to "sell", target price to $3.

Before

in the discussion of Groupon’s business model and why Groupon can survive and live well, I should point out that Evercore had been given for Groupon rating to "overweight", target price of $17, then repeatedly adjust the downgrade, until now "sell" rating and target price of 3 U.S. dollars. At present, the analyst Ken · Sheena based only on the stock adjustment performance rating, rather than to accurately predict the future prospects of the company. This is not much help for investors.

Groupon is close to many investors believe that the reserve price. The company’s annual revenues of more than $2 billion, cash flow is positive, with $1 billion 200 million in cash and no debt, if its stock price reached $3 target price given by Evercore, then the stock will be unbelievable. A $3 share price means a market capitalization of $2 billion, or just $800 million in bank cash, even less than half of Groupon’s annual sales. Of course, the future operation of the success or failure will determine whether Groupon can maintain gross profit and growth. Although it is hard to say what will happen in the future, I would like to use an example to help readers understand why should be optimistic about the business model of Groupon.

I recently moved to the western city of Portland, and then every day to receive Groupon daily mail messages through the mailbox. A newly opened high-end art chain cinema in downtown Portella on Friday launched the Groupon buy. Only 19 dollars, you can enjoy two movie tickets and a bucket of popcorn or a drink. In the evening, they sold 5000 copies of Groupon coupons.

let’s analyze. In less than a day, G>

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