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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Groupon ( GRPN) pushed the Internet industry lower today making it today's featured Internet laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Groupon fell $0.27 (-3.0%) to $8.70 on average volume. Throughout the day, 16,837,652 shares of Groupon exchanged hands as compared to its average daily volume of 17,263,800 shares. The stock ranged in price between $8.62-$9.06 after having opened the day at $9.03 as compared to the previous trading day's close of $8.97. Other companies within the Internet industry that declined today were: Friendfinder Networks ( FFN), down 8.6%, Jiayuan.com International ( DATE), down 7.8%, Internet Initiative Japan ( IIJI), down 6.1% and YY ( YY), down 4.5%.

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 $5.7 billion and is part of the technology sector. Shares are up 84.6% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Groupon a buy, 6 analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Groupon as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

On the positive front, Dealertrack Technologies ( TRAK), up 9.8%, Phoenix New Media ( FENG), up 8.4%, ChinaNet Online Holdings ( CNET), up 7.7% and Autobytel ( ABTL), up 7.3% , were all gainers within the internet industry with eBay ( EBAY) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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