This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Best Buy vs. Groupon: Deadliest Portfolio Killer

BBY Chart BBY data by YCharts

NEW YORK ( TheStreet) -- If you look at a chart for either Groupon (GRPN - Get Report) or Best Buy (BBY - Get Report), the first thing an investor is likely to notice is that they both travel from the top left to the bottom right. Best Buy is from the old guard jumbo box retail while Groupon is part of the online revolution in marketing; however, they both share many similarities beyond causing investor losses.

Groupon is headquartered in Chicago, and the stock trades an average of 7.1 million shares per day with a market cap of $5.7 billion. Since its IPO, the most consistent aspect of Groupon is the price decline in its share price.

I like how Groupon reminds me of 1998 and the bubble. Technology IPOs from companies that lose money bring me back to the days of watching the movie "Rounders" and listening to Santana's "Smooth" on the radio.

Mark Twain is often credited to have said, "History doesn't repeat itself, but it often rhymes." I don't know if he said it or not, as I wasn't there, but it sounds like him. Nevertheless, it sure holds true in the stock market. Funny how quickly people forget history, or maybe it's new investors who haven't studied the past bubbles. It could be that people believe "this time is different."

Two things turn on my BS alert system the fastest. When I hear or read "this time is different" or "studies show _______ (fill in useless BS here)."

The average analyst price target is $18.88, and the only way I can figure out how they came up with a number like that is that they typed the wrong symbol into the system during the company examination. In the last month alone, Groupon has lost 15% of its value, and there is little reason to believe the trend is about to end. But we are getting ahead of ourselves. Let's take a look at Groupon's biggest-loser competitor: Best Buy.

The company was founded in 1966 and is headquartered in Richfield, Mn. Best Buy trades an average of 12 million shares per day with a market cap of $7.2 billion.
1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BBY $31.50 -0.76%
GRPN $3.38 -0.15%
AAPL $94.36 -0.86%
FB $117.93 0.43%
GOOG $697.57 0.75%


Chart of I:DJI
DOW 17,651.16 -99.75 -0.56%
S&P 500 2,048.79 -14.58 -0.71%
NASDAQ 4,721.7940 -41.43 -0.87%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs