Groupon Inc : Fall again and again
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05/22/2012 | 12:07pm
Opinion : Bearish under 13.5 USD
Target price : 9.8 USD
Stop loss: 9.8 USD
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NASDAQ
Retail – Discount Stores |
Groupon seems to disappoint its investors a little bit more at each session. With a 50% decrease since February, Groupon security is one of the poorest performances of Nasdaq Index.
The fourth quarter earnings publications in february were disappointing for investors. The group published a loss of $9.8 million. The company is investing massively in Russia and China to integrate emerging markets but Groupon is an young company without basis and experience. Competitors are numerous and benefits from historical customer base. Google, Facebook and more others are trying to develop this kind of business.
The stock made a rebound on its USD 9.87 support but moving averages are bearish and Groupon' security is consolidating in the USD 11.50/12.50 area. A new bearish movement could take place on the way to the last historical lowest at USD 9.8.
Investors could sell Groupon' stocks and target a 20% gain with an objective at USD 9.8. A stop loss will be engaged at USD 13.56 to avoid disappointment.
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