Groupon (GRPN) Pops on Update to Point-of-Sale Service

Jacob Harper |

Groupon Inc. (GRPN) fed the bulls on Oct 10 when they announced an update to their Breadcrumb point-of-sale system which helps businesses to better tailor what deals people are seeking. The news overcame recent bearish predictions out of Wall Street that told of a major correction soon coming Groupon’s way.

Breadcrumb Update Energizes Investors

As Groupon is a daily deals site, it behooves them to assists their client companies in designing the most attractive deals possible, which they do through the point-of-sale iPad app Breadcrumb.

Groupon’s Varun Krishna  wrote, “Our team spent countless hours conducting on-premise research and interviewing merchants about their biggest point-of-sale obstacles.” Using this customer feedback Groupon instituted several updates to the system, which were unveiled Oct 9 at the Money 2020 conference.

The updated Breadcrumb point-of-sale system stores consumer contact information, analyzes the patterns of goods purchased, and assigns specific customers to specific employees.

Bears Make Their Case Against Groupon



Concomitant with the updated Breadcrumb app, analysts began grumbling that Groupon’s highly successful year might be coming to a close. The company’s shares are up 111 percent in 2013, gaining a substantial boost resulting from a positive second quarter earnings report.

However, it was positive in that Groupon didn’t lose as much money as anticipated, only posting  $7.6 million in losses. And the future doesn’t look brighter. A company can only live on promises for so long, and Groupon might never turn a real profit.

As John Shinal of Marketwatch pointed out, “No one is expecting actual third-quarter net income for Groupon… it’s the same (problem it’s always been: the company hasn’t been able to operate profitably on a consistent basis.”

Groupon is also experiencing major competition from much larger companies Amazon.com, Inc. (AMZN) , Google Inc (GOOG) and Facebook Inc (FB) , and might not be able to survive if those tech giants encroach any further on the daily-deals market.

Groupon was up 6 percent in early trading.

 

(image courtesy of Wikimedia Commons)

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

Companies

Symbol Name Price Change % Volume
FB Facebook Inc. 170.54 -0.57 -0.33 12,097,138 Trade
AMZN Amazon.com Inc. 955.10 -9.55 -0.99 2,641,787 Trade
GOOG Alphabet Inc. 928.53 -3.92 -0.42 1,052,704 Trade
GRPN Groupon Inc. 4.56 0.03 0.66 4,641,740 Trade
CRARY Credit Agricole SA ADR 9.06 0.01 0.11 20,775

Comments

Emerging Growth

Radient Technologies Inc.

Radient Technologies Inc is engaged in research, development and commercialization of environmentally responsible technology for the extraction, isolation and purification of soluble products from a wide range of materials using…

Private Markets

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…

Quants Inc

Quants, Inc, a California Corporation, develops, markets and operates financial technology platforms and alternative investment products offering sophisticated risk management since 2010. The Company has primarily sharpened its focus with…