Groupon surges 12 per cent on stock upgradation
15 Jun 2013
Groupon Inc, the biggest daily deal website, surged 12 per cent following analysts at Deutsche Bank AG upgrading the stock, citing optimism over the potential of the company's mobile application to boost sales, reports Bloomberg.
The shares were up at $7.65 at the close in New York, in their biggest gain since 1 March. The stock has advanced 57 per cent this year, as against a 14 per cent gain in the Standard & Poor's 500 Index.
Coupons sold on mobile devices accounted for 45 per cent of all transactions in North America in the first quarter, rising from less than 30 per cent a year earlier.
Co-chief executive officers Eric Lefkofsky and Ted Leonsis are working on stabilising the company even as they searched for a replacement for Andrew Mason, the Groupon co-founder they ousted as CEO in February amid faltering growth. Groupon started out promoting discounts via e-mail alerts, was adding customers with more smartphone users turning to its mobile app according to Ross Sandler an analyst at Deutsche Bank.
''Groupon is surprisingly the most mobile penetrated e-commerce company we track,'' Sandler wrote in a research report today.
According to Sandler's projections, a sales surge to mobile users, would see revenue increase 53 per cent to $3.56 billion in 2015 from $2.33 billion last year.
Meanwhile, Groupon today announced that since its inception in April of 2012, G-Pass had allowed 1 million Groupon customers to avoid queing up for tickets, to their favourite shows, movies or games. With the G-Pass ticketing system purchasers get direct admission to events, eliminating the need to visit the box office to pick up tickets before entering a venue.
According to Greg Rudin, VP and general manager at Groupon, perfecting the customer experience was always a top priority at Groupon. He added, G-Pass simply allowed customers to worry less about getting into the venue and focus more on enjoying the event, adding, at the same time, it helped alleviate stress on box office partners.
G-Pass had been adopted by hundreds of merchants across the US and Canada, across categories such as music, sports, arts, theatre and family events. For subscribers, this meant access to presale opportunities, premium tickets and packages that enhanced the experience, as also access to some of the most sought-after events in the best venues.
