Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



Groupon Competitior LiveDeal (LIVE) Skyrockets

  +Follow January 10, 2014 12:21PM
Tickers Mentioned:

Excited by its nimble platform, investors have flocked to start-up LiveDeal (LIVE) in droves, causing shares to more than double since the start of the year.

Of particular attraction is LiveDeal’s ability to update instantly, as opposed to daily deals sites like Groupon (GRPN) that only update once a day. This allows restaurants the opportunity to modify, add, or eliminate deals instantly in immediate response to demand.  

Stock Market Media Group initiated coverage on LiveDeal on Jan 10, assigning the company a rating of “strong buy” while effusively praising the company, saying “it should prove to be a home run.” Stock Market Media’s report contrasted LiveDeal with rival Groupon, asserting customers would be drawn to LiveDeal because they don’t send “users… endless, irrelevant, untargeted emails” and don’t make customers pre-pay for vouchers.

For its part, Stock Market Media Group are paid consultants, so their word should be taken with a grain of salt. Nevertheless, LiveDeal is indeed soaring, and the report certainly plays into the general bullish current investor sentiment on LiveDeal.

Groupon has long been vulnerable to a more nimble competitor. In 2012 the company finally shed its founder and former CEO, the much-maligned Andrew Mason who was called “the worst CEO” by CNBC.  While that addition by subtraction did buoy Groupon, who saw shares skyrocket 120 percent in 2013, the company still languishes at half their early 2012 valuation, and suffers from increasingly mediocre projections.

LiveDeal currently only offers its services in San Diego, Los Angeles, and San Francisco, with business in all three markets greatly exceeding expectations. LiveDeal is expcted to move into other markets rapidly.

As a company, LiveDeal has an interesting history. Originating as a classifieds site in the aftermath of the tech bubble, LiveDeal skyrocketed to $400 a share in 2004 before crashing out, losing 99 percent of its value over the next five years. Yellow Pages acquired the company in 2007 for a scant $12 million.

Since languishing for years, the LiveDeal relaunch has energized investors. LiveDeal has gained 124.78 percent already on the year already to hit $9.11 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

  +Follow January 10, 2014 12:21PM



blog comments powered by Disqus

 Today's Must Reads

Welcome to Equities.com's Small-Cap Throwdown

These Analysts Called Apple's (AAPL) Collapse, Here's What They're Saying Now

7 Dow Stocks Worth Owning and a Lot that Aren't

Sprint Turnaround Has Begun

Saving the

Small-Cap Market


Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register