What You Should Take Away From Groupon's Big Drop
By Benjamin Goldman:On November 22nd, a day when the S&P 500 dropped by 41 basis points, Groupon (GRPN) shares dropped by a staggering 14.89 percent. Other "hot stocks" like Netflix (NFLX), Green Mountain Coffee Roasters (GMCR), Amazon (AMZN), and Salesforce.com (CRM) have also experienced large drops recently, but their drops came off of major announcements by the company, earnings disappointments, and severe downgrades by big financial minds. According to this Reuters article, the Groupon drop stemmed from concern about "increased competition". The article cites how Living Social announced on Monday that it plans to offer "more than 20 deals with national merchants" pertaining to Black Friday deals. However, Groupon opened AT A GAIN on Tuesday. In addition, it's been public knowledge for a long time that Groupon has plenty of competition. Google Offers and Living Social are the big names, and Credit and Debit card rewards programs will continue to expand andComplete Story »
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