Groupon Inc (GRPN) Shares Slip On Holden’s Departure; “Buy” Maintained

Sterne Agee analysts Arvind Bhatia and Brett Strauser rate Groupon Inc (NASDAQ:GRPN) as a Buy as they comment on today’s volatility.

Groupon Inc (NASDAQ:GRPN)’s shares are down 8% intraday following last night’s announced departure of Jeff Holden, SVP of Product Management.

Michael Zimmerman’s Prentice Capital is having a strong year

business manPrentice Capital was up 15.3% net last month, bringing its year-to-date gain to 49.4% net. Prentice touted its ability to preserve capital during market downturns like the first quarter of this year and the fourth quarter of 2018. Q3 2020 hedge fund letters, conferences and more Background of Prentice Capital The fund utilizes a low Read More

Buy ratings maintained for Groupon

Although we think Groupon Inc (NASDAQ:GRPN) has enough management depth, we consider this as a mild negative given Jeff’s key role at Groupon. Our understanding is Jeff will NOT be joining a competitor. The timing of the announcement adds to our existing concerns regarding 4Q trends. Recall, in early January, when the company closed the acquisition of Ticket-Monster, management added language on its website that caused us to be concerned. Specifically, management indicated: “We are not updating or affirming the guidance that we gave on the earnings call on Nov 7, 2013.” Despite our near-term concerns, we think the stock is attractive long-term for the following reasons: 1) We like the turnaround potential; 2) We think Groupon is the best positioned company to solve for “local” eCommerce; 3) Attractive valuation.