Can Groupon Stock Keep Going After Last Week's 18% Pop?

Can Groupon Stock Keep Going After Last Week's 18% Pop?

The turnaround at Groupon (NASDAQ: GRPN) continues to impress. Shares of the daily deals leader soared 17.7% last week, moving higher after another blowout financial report. A couple of analysts would go on to pump up their price targets following the encouraging quarterly results, just as Groupon itself would boost its full-year gross profit and adjusted EBITDA guidance.

The stock's been a surprising winner this year, now trading nearly 65% higher in 2017. Revenue is still going the wrong way. Revenue of $634.5 million declined nearly 8% during the third quarter, matching the year-over-year top-line slide it posted a quarter earlier. Investors have learned not to read too much into Groupon's revenue. The reinvigorated dot-com darling is paring back from unprofitable overseas markets and lower-margin categories. It's one of the market's legitimate cases of addition through subtraction. 

The real turnaround at Groupon is taking place on the bottom line where it once again exceeded analyst profit targets. The deal maker has now come through with three straight profitable quarters, so generating positive net income is no longer a fluke. 

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Source: Fool.com