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Why Groupon Inc (GRPN) stock is on the rise today?

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Groupon shares have shown an increase in its stock after it released its Q4 results. American-based global e-commerce marketplace basically connects subscribers with local merchants by offering activities, travel, goods, and services in countries.

Why the stock has jumped?

The 4th quarterly results of the company have been announced on 25th February, which has become the reason for rise in the stock. The summary shows, that the Gross profit of fourth quarter is $343million and $1.4 billion for the full year. Whereas fourth-quarter income from the already running operations is $14 million while there has been a loss of $287million for a full year. 

In Q4, GAAP net income per diluted share is $0.47 while the net loss for the whole year has been $10.7 per diluted share. And the non-GAAP net income per diluted share is $0.51and for the whole year it is $1.86. The company has ended the year 2020 with $851 million in cash.

The consolidated summary of the fourth quarterly result shows a clear decline in net income and revenue as compared to 2019. Revenue was $343.1million in the Q4 of 2020 which is down by 44% as compared to the fourth quarter of 2019. While net income was $14.0 M in Q4 of 2020 which is less than 2019 when it was $77.0million.

It’s evident that the company has made noticeably low progress in this pandemic year but the results were better than expected as analysts were looking for a loss of $0.18 per share on revenue of $281.81 million. The past year has undoubtedly caused a major setback for the market economy on a global level.

Conclusion

In positive connotation, it is expected from the company that it will resume its growth in Q1 2021, whereas the results will be clearer in Q2of 2021.

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