Sterne Agee has upgraded Groupon to a buy, and has given the stock a $9 price target. In this video, however, Motley Fool senior technology analyst Eric Bleeker gives investors a word of caution. He notes that while the company is aiming to expand beyond being an email-based business to becoming a local marketplace portal with longer-term fixed deals, success in the marketplace arena can be a lot easier said than done and offers little to appeal to consumers who weren't already on the company's e-mails. While investors might be excited by Groupon experimenting with new avenues for growth, jumping in now before we've seen whether a marketplace idea can get traction might be premature.
Groupon's story is one of the American Dream. The company went from 400 subscribers in 2008 to over 150 million today. Will this company live out its dream, or leave shareholders empty-handed? In order to answer that question, our analyst has compiled a premium research report with in-depth analysis on whether you should buy or sell Groupon right now, and why. Simply click here now to get started.
The article Don't Trust This Groupon Buy Signal originally appeared on Fool.com.
Eric Bleeker, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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