Groupon (NASDAQ:GRPN) Could Survive if They Get a Few Things Straight

The Groupon Company (NASDAQ:GRPN) had to face some hard times this year. The company saw huge losses and their shares dropped by nearly 40%. However, the company managed to outperform analysts’ estimates and somehow gained around 20% in shares since last month. However, it is expected that the company can gain more strength and market share if they look upon certain issues and manipulate them in such a way that Groupon (NASDAQ:GRPN) can get better share prices and revenues.

Although there is no certainty that their stock prices would rise, but there is a lot that the company can do to compensate. First of all Groupon (NASDAQ:GRPN) should adopt a local commerce platform, this way the company can one once again gain its long gone identity. Groupon (NASDAQ:GRPN) used to be the daily deals giant, but that is not the case anymore. The company’s major revenues depend upon its coupon deals now. However, these coupon deals are decreasing in frequency and now they are seen in week or sometimes even months.

If the company wishes to get out of this financial deadlock they should start expanding their business through advertisement and use their app as a gateway to local businesses. The recent takeover of Ticket Monster (NASDAQ:GRPN) has also given the company some extra boost. Moreover, this deal also proved beneficial for Ticket Monster (NASDAQ:GRPN) where the company received extraordinary popularity after it was bought.

Groupon (NASDAQ:GRPN) purchased Ticket Monster (NASDAQ:GRPN) nearly a year ago and now the Ticket Monster (NASDAQ:GRPN) has somehow outpaced its buyer company’s earnings. However, Groupon (NASDAQ:GRPN) is now planning to sell a part of Ticket Monster (NASDAQ:GRPN) which would attract more investors towards Ticket Monster (NASDAQ:GRPN), and with an increasing reputation, investors would become aware of Groupon’s (NASDAQ:GRPN) valuable assets as well.

Finally, the company has to do something about its accounting practices. Lots of investors have been criticizing Groupon’s (NASDAQ:GRPN) procedures. Moreover, the company is not worth it if can’t get enough profits. Groupon’s (NASDAQ:GRPN) first priority should be to turn the company into a profitable one. According to general assisted accounting principles: Groupon (NASDAQ:GRPN) is still unprofitable. This will eventually bring down anything that can increase Groupon’s worth.

Experts believe that investors still don’t see the actual worth of Groupon (NASDAQ:GRPN). They believe the company is still undervalued and this maybe because of the company’s non sustainable trends. The company at one time was termed as the world’s fastest growing company, but then again, the company had to face losses and market instability. However, one thing is for sure: Groupon’s (NASDAQ:GRPN) shares may not reach the $20 per share mark any time soon but if the company manages to increase their profitability, they can at least shake off the ongoing decline in its popularity.

So, we see this is not the end for the company and they could very well survive the crisis if they manage things properly now.