The future of Groupon is probably Groupon Now. I'm walking around my neighborhood and I want to know about deals available just for me instantaneously. I want a coffee and this local coffee shop will offer me a cappuccino and muffin for $2 vs. me continuing to drive and find the next Starbucks ( SBUX). For that to happen, I have to know an app to look for in the moment that can tell me about that particular deal and local merchants have to have a way to find me in that app. That's where a Groupon can come in with its Groupon Now product. However, that vision is still far from reality. Yet, more than 40% of Groupon's users are on a mobile device. The potential is there. Groupon just has to execute.
Groupon's stock is in the tank these days, so it doesn't have the currency it did when it was above $20. It has cash but not an infinite amount, especially considering it's in a turnaround phase. Yet, its Groupon Now product could greatly benefit from it buying Foursquare which is just now starting to expand into the local deal space. Foursquare is private and had been rumored to be talking to Apple ( AAPL) of late. Groupon probably worries that, if it pursued Foursquare, a bigger buyer would swoop in. But Foursquare would be a great fit.
7. Show Revenue Growth Again
Wall Street is a fickle bunch. Show hockey stick growth and everyone loves you. Show slowing growth and your stock gets crushed. But when Facebook started to show revenue growth again, Wall Street was quick to come back in the fold and the same would be true now for Groupon.
8. Articulate How You Win with Goods
There is still a lot of concern about Goods and if that business, despite its growth, will drag down earnings or require huge investment in distribution centers to compete directly with Amazon ( AMZN). Groupon has tried for two earnings calls now to say they wouldn't out-Amazon Amazon, but have failed to say what that means and where Goods is going. How is it distinct from Amazon or others? Where does it fit within Groupon and how does Groupon win with it?