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

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 higher today making it today's featured internet winner. The industry as a whole closed the day down 0.7%. By the end of trading, Groupon rose 34 cents (5.9%) to $6.07 on average volume. Throughout the day, 14.1 million shares of Groupon exchanged hands as compared to its average daily volume of 17.9 million shares. The stock ranged in a price between $5.60-$6.09 after having opened the day at $5.63 as compared to the previous trading day's close of $5.73. Other companies within the Internet industry that increased today were: Yelp Inc Class A ( YELP), up 8.6%, Opentable ( OPEN), up 4.6%, Vipshop Holdings Ltd ADR ( VIPS), up 3.1%, and Zynga Inc Class A ( ZNGA), up 2.9%.
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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. The company also offers deals on products for which it acts as the merchant of record. Groupon has a market cap of $3.64 billion and is part of the technology sector. Shares are up 17.9% year to date as of the close of trading on Thursday. Currently there are two analysts that rate Groupon a buy, six analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Groupon as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.

On the negative front, Deltathree ( DDDC), down 30%, VirnetX ( VHC), down 7.2%, LiveDeal ( LIVE), down 6.7%, and Selectica ( SLTC), down 6%, were all laggards within the internet industry with SINA Corporation ( SINA) being today's internet industry laggard.

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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