Groupon Is Hinting at a Strong Q4, but Is That Good Enough for Investors?
When the internet was still relatively new, Groupon (NASDAQ: GRPN) made a huge name for itself offering coupons to restaurants and other attractions. Then, it tried to switch up its business model in what was, with 20/20 hindsight, a terrible decision to sell physical products. Now that the company is going back to the basics, management is telling investors the fourth quarter of 2022 will be a key turning point for the business. But how true is that?
Groupon's origin story basically boils down to it providing online marketing for local businesses, something that was out of reach for many mom-and-pop operations. Teaming up with Groupon meant local business owners would provide Groupon's customers with a discount to draw in these new patrons. Groupon took a cut of the promotional sales for providing the platform, while consumers benefited from the discounts. It was a novel idea that combined the savings typically associated with bulk purchases and the fast-growing world of e-commerce.
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Source Fool.com
