Groupon’s 1Q Exceeds Expectations; Increases Guidance; Raising FVE to $4.60; Shares Fairly Valued
Groupon reported better-than-expected first-quarter results, as last year’s restructuring is bearing fruit helping the firm operate more efficiently while investing to further enhance its services. While streamlining the operation is helping Groupon expand margins, as we expected, we note that the firm is continuing to increase marketing as a percentage of revenue. It has done so since 2015, which we believe is due to its lack of network effect and switching cost moat sources, which forces Group...Groupon operates online local commerce marketplaces that connect merchants to consumers by providing goods and services through its websites, groupon.com, and its mobile applications. The company provides goods and services in three categories: Local, which includes offerings from local and national merchants, and local events; Goods, which provides customers the ability to find discounted merchandise across multiple product lines, including electronics, sporting goods, jewelry, toys, household items and apparel; and Travel, which features travel offers at both discounted and market rates, such as hotels, airfare and package deals covering both domestic and international travel.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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