Groupon Inc (GRPN): Today's Featured Internet Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Groupon ( GRPN) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Groupon fell 5 cents (-1.3%) to $3.81 on light volume. Throughout the day, 7.4 million shares of Groupon exchanged hands as compared to its average daily volume of 18.3 million shares. The stock ranged in price between $3.70-$3.84 after having opened the day at $3.84 as compared to the previous trading day's close of $3.86. Other companies within the Internet industry that declined today were: Synacor ( SYNC), down 7.5%, Friendfinder Networks ( FFN), down 5.3%, China Finance Online ( JRJC), down 4.5%, and Net Element International ( NETE), down 4.4%.
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Groupon, Inc. operates as a local commerce marketplace that connects merchants to consumers by offering goods and services at a discount in North America and internationally. Groupon has a market cap of $2.46 billion and is part of the technology sector. Shares are down 81.8% year to date as of the close of trading on Wednesday. Currently there is one analyst that rates Groupon a buy, three analysts rate it a sell, and 19 rate it a hold.

TheStreet Ratings rates Groupon as a sell. The area that we feel has been the company's primary weakness has been its poor profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).

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