Groupon Inc (NASDAQ:GRPN) is discounting the price heavily – GRPN, PCMI, EBAY, OSTK

Discounting techniques started when businesses came into being, while key corporate players such as Groupon Inc (NASDAQ:GRPN), Living Social and Zetu are well aware of its importance. These businesses are providing discount vouchers, which can give the customer up to a 90% concession. This offer will definitely attract an increasing number of customers, because they are always looking for discounted prices. The prevailing price of cupcakes at Groupon Inc is 75% lower than their usual price.

The reason for this strategic change emanates from customers’ psychological need of paying less. As mentioned earlier, the companies are well aware of this particular need. Yet, the new strategy’s effectiveness is still veiled, which will be uncovered when the strategy is deployed in the market for a considerable period of time. GRPN’s share price is currently at a record low level.

http://www.bdlive.co.za/life/gadgets/2013/02/13/why-groupon-works–but-not-for-everyone

Shifting reader’s focus to the broader market, let us consider the market performance of other stocks that significantly affect the same sector. PCM Inc (NASDAQ:PCMI) rose +2.35% to settle at $7.40, eBay Inc (NASDAQ:EBAY) moved up +0.66% to end at $56.78, while Overstock.com, Inc. (NASDAQ:OSTK) jumped -0.39% to finish at $12.79 on Tuesday.

Groupon Inc (NASDAQ:GRPN) last session’s volume of 7.62 million shares was lower than its average volume of 11.67 million shares. The stock, after opening at $5.41, hit the high price of $5.59 and then closed at $5.29 by scoring -1.31%.

GRPN generated revenue of $2.19 billion in the previous twelve months and earned -$51.67 million. The Company showed a positive -1.40% in the net profit margin as well as in its operating margin, which remained at 4.41%.

GRPN’s past twelve months’ price to sales ratio was 1.59 and price to cash ratio remained 2.89. As far as the returns are concerned, GRPN’s return on equity was recorded as -13.18% and return on investment decreased -6.58%, while its return on assets stayed at -2.17%.

The stock showed weekly upbeat performance of 3.32%, which was maintained for the month at -1.12%. Likewise, the positive performance for the quarter was recorded as 91.67% and for the year was -75.01%, while the YTD performance remained at 8.85%.

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