How To Buy Groupon Stock

How To Buy Groupon Stock

Welcome to Trading Brokers step by step guide to buying Groupon stock. Here you will find an easy to understand explanation of trading Groupon stock. This includes how to buy Groupon shares online, what you need to trade Groupon stock and how to open a trading account with a stock broker so that you can buy Groupon stock online today.

Maybe you have heard of buying Groupon stock online or through a friend. Perhaps you are looking to trade and are curious about the different options available to you. Whether you are looking to speculate, invest or just learn more, this guide on how to buy Groupon stock can help you along your journey.

Groupon, the global online marketplace, helps to connect subscribers with local merchants. Should you buy its stock?

Overview of Groupon

Groupon, Inc., launched in 2008, offers discounts at restaurants, spas, and retail stores. It is intended to be a way for small businesses to sell excess deals and inventory while bringing in new customers who may not have otherwise discovered them.

The company set out on the purpose of “bridging the gap between traditional commerce and the web.” Groupon was once regarded as the “fastest-growing company ever” by Forbes. However, today, it is regarded as a “shadow of its former self.”

How so? The company once rejected a $5.8 billion acquisition by Google. Now, it has a market cap of less than $1billion. Nevertheless, it is still not all gloom for the “once-darling of Wall Street.”

What Moves Groupon’s Stock?

Groupon Inc. went public amidst pomp and hype in 2011. But things have largely gone downhill for the stock ever since. It trades on the NASDAQ under the ticker GPRN. However, from now on, some factors may determine the stock’s movement either positively or negatively. Both scenarios are examined below.

The Negatives

Performance History

To do proper investing, you must conduct some historical background check. At some point, Groupon was a “hot” stock, with massive valuations. Its listing in 2011 was regarded as the largest internet IPO since Google (now Alphabet) in 2004. Then valued at $12.7 billion, it has since fallen massively over the years.

That is, over time, things have gone downhill for the once-hot company. At some point, it even faced potential delisting from the stock exchange when its stock went below $1. The stock also once traded at 90% below its peak, if stock-splits are factored in.

Still, many of the issues that were responsible for the fall over the years have largely remained. One such issue is its constantly falling revenues, a reality that has not abated even years after listing. Also, add its inability to turn a profit.

The stock’s history might be a significant factor in influencing how its price will pan out in the next few years. This is because investors – especially first-time investors – will likely want to know how well it has done in the past and decide whether to invest based on that.

Expansion

Groupon’s expansion has been severely hampered. In fact, instead of expanding, it has been the opposite. In the last few years, the company has closed operations in several countries to streamline operations and focus on very few markets.

Business Model

Also, Groupon is in the business of connecting consumers with local merchants by offering goods and services at the steepest of discounts. The problem with this business model is that it is viable mainly during economic downturns. The company thrives during recessions. However, the truth is that recessions do not last forever; and businesses will not give coupons all the time.

A business that thrives on just offering coupons may find it hard to thrive when such coupons are not so much available and are not very much needed. Furthermore, with this form of business model, it becomes quite difficult to make any profit at all.

The Positives

Prevailing Economic Realities

As earlier hinted, Groupon’s business model thrives well during economic downturns. As the global economy is expected to undergo such a downturn in the midterm, there are some chances of Groupon experiencing a boost in its business.

Restructuring

Groupon has embarked upon restructuring efforts in appointments and redundant business operations to revamp its business prospects. All these are aimed at streamlining operations to ensure the business bags profit. But how well they will go to reverse the company’s fortunes is yet to be discovered.

Before investing in Groupon

Before making any investment decision about Groupon, you should consider that it is a growth stock, and as is typical of growth stocks, there is a comparatively higher risk. As experienced over the years, that risk has manifested.

But that does not mean Groupon is not worth investing in. The company still has a long way to regain its initial glamour, that is, if possible.

Investing in Groupon

Investing in Groupon stock is when you buy Groupon shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Groupon stock in order to try and make a profit when the Groupon stock price increases in value.

Trading Groupon stock

Trading Groupon stock is when a trader speculates on the movement in the Groupon stock price without actually owning the shares in Groupon. Traders tend to buy and sell Groupon stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.

You can buy and sell Groupon stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).

Groupon CFDs

One of the most popular ways to trade Groupon stock is via CFDs (contracts for differences). When trading Groupon CFDs, you do not actually invest in Groupon shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Groupon stock price. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.

A CFD trader can go short or long, set stop and limit losses and apply trading scenarios that align with their own personal objectives. Traders would open long (buy) positions, if they think the stock price of Groupon will rise or short (sell) positions if they thought that the Groupon stock price will fall. The difference in price between the entry and exit price is the traders realised profit or loss, excluding any broker commission and fees.

For example, if you think Groupon shares are going to increase in price, you could buy a share CFD on the company. You will exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares increase in price and making a loss if they decrease in price.

On the contrary, if you think Groupon shares are going to decrease in price, you could sell a share CFD on the company. You will still exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares decrease in price and making a loss if they increase in price.

Groupon futures

Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Groupon investors can use futures trading to speculate on the price movement of Groupon stock in order to try and make a profit. Traders would look to go long (buy) a futures contract if they believe the price will rise or short (sell) a futures contract if they believe the price will fall. The difference in price between the price at the start and expiry date of the futures contract is the profit or loss from the contract.

Groupon spread betting

Spread betting is a financial derivative that enables traders to speculate on Groupon stock falling or rising without taking ownership of the underlying asset. If the trader makes a correct prediction and the asset does move in that direction, they could make a profit, minus any broker fees. On the other hand, if the price moves against their prediction, they would incur a loss.

Financial spread betting is similar in ways to CFD trading except that you are betting a fixed amount per point on the Groupon stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.

Groupon options

Groupon options are financial instruments that are derivatives based on the value of Groupon’s stock. Traders usually enter into calls when they expect the price of the underlying asset to increase, and puts when they expect the price to decrease. Option contracts come with an expiration date before which the holder needs to exercise their option to buy or sell an underlying asset at an agreed-upon price. The stated price on an option is known as the strike price.

Buyers can choose to exercise their calls and puts or not whereas sellers are obligated according to the buyer decision. Therefore, the sellers (writers) can be exposed to more risk than buyers whose losses can be limited to the premium paid for the contract in the instance they do not exercise the contract. On the other hand, sellers could lose more depending on the Groupon market price.

Groupon ETFs

Exchange Traded Funds (ETFs) enable traders to invest in a basket of securities that trade intraday like individual stocks on an exchange, and are typically designed to track the performance of an existing market or group of markets.

Each ETF is usually focused on a specific sector, asset class, or category. ETFs can be commonly used to help diversify an investment portfolio and create a mini-portfolio, or, for the active trader, they can be used to try and take advantage of price movements.

Groupon is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Groupon, may consider ETFs.

Where to buy Groupon stock?

Stock trades are processed via a stock exchange, where a stock broker represents each investor. The majority of investors will nowadays use an online stock broker to buy and sell stocks through a stock trading platform which will enable them to connect to the stock exchange. You can see a selection of our best stock brokers below with whom you can open an account to trade stocks online.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.

ASIC, BVI, CBI, FFAJ, FSA, FSCA

Min $100 Deposit

2006

1:400

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2.

FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF

Min $250 Deposit

1974

1:200

Review Trade! Trade!
Terms & conditions apply
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3.

ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA

Min $200 Deposit

2010

1:500

Review Trade! Trade!
Terms & conditions apply
CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
4.

ASIC, CySEC, IFSC, DFSA

Min $5 Deposit

2009

1:888

Review Trade! Trade!
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.28% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
5.

ASIC, CySEC, FSA

Min $200 Deposit

2007

1:500

Review Trade! Trade!
Terms & conditions apply
Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Why trade Groupon stock?

Trading the stock market has become a popular investment activity for many people, especially with the technology that we have these days making it more accessible than ever. There are a vast number of trading brokers, trading platforms and trading apps available for buying and selling Groupon stock with relative ease. The cost involved to get started makes trading Groupon stock accessible to traders of all experience levels from across the globe.

The availability of leverage has also contributed towards the increase in aspiring traders. Leverage allows traders to hold a position size greater than they would have been able to without it. E.g. An account balance of $1,000, could take a position size of $5,000 with 1:5 leverage. Whilst this can increase potential profits, it also greatly increases risk. It is therefore of the upmost importance that you have a clear understanding of the significant risks involved with online trading, especially when using leveraged positions.

The majority of traders would look to buy and sell Groupon stock to try and earn profit from the variation in Groupon’s stock price. When trading Groupon CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Groupon shares. This can make it a more convenient trading method for anyone who has a trading account with an online broker. Alternatively, long term investors may purchase traditional shares in Groupon’s stock for a more long-term hold.

Buying Groupon stock can also be a way to diversify a trading portfolio and to hedge against shares in other stocks or investments in other asset classes such as forex, commodities, precious metals and cryptocurrencies.

However, before investing in Groupon, it is important you understand the dynamics that affect the Groupon stock price.

How to trade Groupon stock online?

If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Groupon stock online. Here is a summary of the key steps:

1.     Decide if trading Groupon stock is for you

Trading Groupon stock online carries an element of risk and can take more time than other forms of investing. You will need to research the company, manage your positions, follow market news and decide how to react to it. It is important to understand the risks and dedication that comes with trading Groupon stock online.

2.     Educate yourself

Before trading Groupon stock, it is imperative to learn as much as possible about investing and trading online. Any mistake could prove to be costly. There is an abundance of free educational materials provided by many online brokers that can help you to improve your trading skills and knowledge.

Most brokerages will also provide a free demo trading account so that you can practice trading Groupon stock online with virtual funds in order to familiarise yourself with the trading platforms and practice your trading strategies until you feel confident enough to open a real trading account.

3.     Choose a Groupon stock broker

In order to trade Groupon stock online, you will need a broker account and trading platform to execute your trade positions through to the market. When choosing a broker, there are a few important things to consider such as regulation, commission fees, platforms, tools, education, funding options and customer support.

If you do not have the time to research brokers, you can see a list of our best brokers that we have already prepared to help traders. If you would like to know more, you can also view our detailed guide on how to choose a trading broker.

4.     Research Groupon

If you have made it this far then you may be ready to start trading Groupon stock online! The next step is to research Groupon to help increase your knowledge in the company. The best brokers should have this information conveniently displayed for you within their trading platform.

5.     Have a trading plan

Some of the most important factors that can help determine Groupon stock trading performance can be the trading plan and discipline. It is important to have a solid trading plan personalised to your own needs that includes the money management and trading strategy that you will use. Most experts and professional traders would try to not let negative emotions such as fear, anger and greed affect their trading strategy.

6.     Buy and sell Groupon stock

Once you feel ready to trade Groupon stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Groupon, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Groupon trades for the long-term, whereas traders may buy and sell Groupon stock on a daily basis.

Is trading Groupon stock right for me?

Trading Groupon stock is a popular choice for long-term investors and active traders. It can be suitable for scalping, day trading and swing trading. Traders who would usually trade forex, trade indices, trade commodities, trade cryptocurrency, may look to diversify their portfolio.

However, it is important to understand the significant risks involved with trading Groupon stock online, especially when using leveraged positions. Most experts would suggest trading on a demo account with virtual funds to begin with.

This can be a useful way to familiarise yourself with how to trade Groupon stock and using trading platforms whilst allowing you to practice your trading strategies until you feel confident and produce consistent results. Most stock brokers provide unlimited demo accounts free of charge.

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