This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Best Buy vs. Groupon: Deadliest Portfolio Killer

Stocks in this article: BBY YHOO EBAY GRPN AMZN GOOG

BBY Chart BBY data by YCharts

NEW YORK ( TheStreet) -- If you look at a chart for either Groupon (GRPN) or Best Buy (BBY), 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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs