NEW YORK (TheStreet) --Shares of Groupon (GRPN - Get Report) are surging by 25.93% to $4.75 in pre-market trading on Thursday morning, after the online marketplace discount services provider posted a narrower than expected loss for the 2016 second quarter.
Groupon posted a non-GAAP net loss of 1 cent per share on revenue of $756 million for the most recent quarter. Analysts were expecting a loss of 2 cents per share on revenue of $711 million.
Company CEO Rich Williams stopped by CNBC's "Squawk Box" to discuss how Groupon's business is growing.
CNBC's Andrew Ross Sorkin questioned Williams about a headline from March that said "Groupon and living social are fighting for their lives" and asked if the CEO believed that to be true.
"I feel like we're fighting for customers every day. I don't feel like we're fighting for our lives at all. We're fighting to build a great business. We're fighting to deliver value to shareholders and those are great fights to be a part of," Williams said.
Williams said the company's main focus at the moment is to "double down" on Groupon's core business, which is locals. "Locals have vast space, we're a leader in this space and there is a ton of room for innovation in local," the CEO said.
A lot of what Williams hopes to do involves making it easier for local merchants and small businesses to work on the company's platform and connect with customers. Williams said that Groupon learned early on that you must have a platform that is easy to work with.
"That's a spot where we think there's a lot of room to develop products and services that allow those small businesses to focus on what they do best while reaching new audiences," Williams told CNBC.
Separately, TheStreet Ratings has set a "sell" rating and a score of D on Groupon stock. This is driven by some concerns, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers.
The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: GRPN