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 0.2%. By the end of trading, Groupon fell 11 cents (-2.1%) to $5.12 on average volume. Throughout the day, 16.7 million shares of Groupon exchanged hands as compared to its average daily volume of 18.5 million shares. The stock ranged in price between $5.03-$5.32 after having opened the day at $5.28 as compared to the previous trading day's close of $5.23. Other companies within the Internet industry that declined today were: Baidu ( BIDU), down 10.1%, Synacor ( SYNC), down 9.7%, China Finance Online ( JRJC), down 6.8%, and Tucows ( TCX), down 6.7%.
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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 $3.69 billion and is part of the technology sector. Shares are up 16.2% year to date as of the close of trading on Monday. Currently there is one analyst that rates Groupon a buy, three analysts rate it a sell, and 20 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.

On the positive front, Global Sources ( GSOL), up 8.9%, Zynga Inc Class A ( ZNGA), up 7%, Yelp Inc Class A ( YELP), up 4.1%, and TechTarget ( TTGT), up 4.1%, were all gainers within the internet industry with IAC/InterActiveCorp ( IACI) being today's featured internet industry leader.

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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