Groupon Inc (NASDAQ:GRPN) shares rose as much as 6% in afternoon trading today on a couple of positive bits of news. Well-known Piper Jaffray analyst Gene Munster reiterated his Overweight rating and $16 per share price target on the struggling daily deals company. He said in his report this week that his proprietary deal tracking shows that Groupon has been steadily increasing the number of daily deals that are available on its site.
Groupon shows signs of a turnaround
Analysts have been talking about Groupon Inc (NASDAQ:GRPN)’s turnaround efforts for years now, so it’ anyone’s guess whether the company’s plans are truly taking. According to Munster, the number deals Groupon has on its site has been steadily increasing since last October. He said this shows that the company has been “increasing its deal density,” thus paving the way for it to become the top local deal marketplace in the world.
In the March quarter, Groupon Inc (NASDAQ:GRPN) reported that it had 200,000 deals in its network, an increase from 140,000 at the end of the previous quarter. Munster believes that number will rise to 500,000 global deals in the next three to four years. That suggests about a 30% growth rate per year in the number of deals that are available on the site.
Groupon buys Canadian couponing app
Separately today, Groupon Inc (NASDAQ:GRPN) announced it has bought SnapSaves, a popular Canadian grocery couponing app. The company did not release the terms of the deal, although it did say that the acquisition of the startup closed on June 13. The acquisition is seen as a positive for Groupon because of the popularity of its own mobile app.
The Star reports that SnapSaves allows users to take a picture of their grocery receipt using the app. Then they can get back cash on some items in various categories. After the amount of cash back earned reaches a certain level, they can receive a check for the money they earned back from their grocery bills.
SnapSaves said the acquisition will increase the number and variety of deals that are offered and also expand its reach across the rest of North America, stretching to cover Groupon Inc (NASDAQ:GRPN)’s 52 million active users.