Is Groupon Taking Aim at Amazon and eBay?
Addressing concerns over whether Groupon (NASDAQ:GRPN) is able to broaden its revenue beyond offering time-limited daily deals for a variety of products, there is now some indication the company may be addressing those concerns. In Germany, the company has launched Groupon Deals, a website similar to Amazon (NASDAQ:AMZN). Like most products and services generally available through Groupon’s daily deals, everything is being sold at very deep discounts. However, it doesn’t appear that Groupon Deals offer these items on a set time limit, save perhaps while supplies last.
Groupon Deals advertises itself as a “complete shopping experience,” but presently its selection of goods is fairly limited. That may speak less to concept of the site than to the fact that it might be a very localized experiment. Nevertheless, Groupon Deals has already done some advertising through Facebook and other outlets.
While its unknown if this roll out will be limited to Germany for the time being or be rolled out internationally, it seems likely as a logical extension of Groupon’s core business and its history of acquisitions. While this approach is hardly new or cutting edge, and it places them in direct competition with other online retailers such as eBay (NASDAQ:EBAY) and Amazon, Groupon may have the international connections and third party relationships to make it work, especially internationally.
At the moment, though, focusing internationally hass come at something of a price: in its earnings report last week, Groupon reported losses of $350 million, with $137 million coming from the costs of international expansion.
Here’s how shares of these companies are reacting to the news:
Groupon Inc (NASDAQ:GRPN): GRPN shares recently traded at $19.69, up $0.34, or 1.76%. They have traded in a 52-week range of $14.85 to $31.14. Volume today was 735,139 shares versus a 3-month average volume of 2,474,020 shares. The company’s trailing earnings are $-0.97 per share.
Amazon.com Inc. (NASDAQ:AMZN): AMZN shares recently traded at $188.16, down $3.14, or 1.64%. They have traded in a 52-week range of $160.59 to $246.71. Volume today was 3,078,537 shares versus a 3-month average volume of 6,486,930 shares. The company’s trailing P/E is 137.74, while trailing earnings are $1.37 per share.
eBay Inc. (NASDAQ:EBAY): EBAY shares recently traded at $33.75, up $0.79, or 2.4%. They have traded in a 52-week range of $26.86 to $35.35. Volume today was 6,926,019 shares versus a 3-month average volume of 10,295,800 shares. The company’s trailing P/E is 13.73, while trailing earnings are $2.46 per share.
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