With shares of Groupon (NASDAQ:GRPN) trading around $5.98 at today’s close, is GRPN an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for a Stock’s Movement
Groupon is a pioneer in the local commerce marketplace. It attempts to connect local merchants to consumers by offering discounted goods and services. This is a brilliant next step to the e-commerce industry but does Groupon have what it takes to execute correctly? Let’s take a look.
T = Technicals on the Stock Chart are Poor
Since its initial public offering, Groupon stock has suffered. It hit a low of $2.60 last year but has since more than doubled. Will this run continue? The stock has been battling it out at a $6 resistance zone, but with the after hours action from earnings today, it doesn’t seem likely that the stock will break these levels anytime soon. The stock is trading down to the $4.50 area now, breaking the uptrend it once had…