Reportedly, online deals provider
) has acquired Mountain View, California-based Glassmap for an
undisclosed amount. Glassmap's technology enables smartphone
users to share their current location on a real-time basis with
family and friends.
Moreover, the application provides relevant information and
events taking place near the users' location based on users'
), Instagram, and Twitter. The Glassmap technology is expected to
complement with Groupon's own Groupon Now service, which provides
local offers based on the consumer's location.
Glassmap's application runs on both
) iOS and
) Android operating systems.
Groupon has been on an acquisition spree over the last 12
months. The company has acquired a number of start-ups such as
CommerceInterface, Breadcrumb, Uptake, Hyperpublic, Adku, and
FeeFighters. These acquisitions are expected to boost Groupon's
position in the small and medium-size business (SMB) market,
apart from expanding its technology and product portfolio.
We believe that Groupon is well positioned to gain from rising
e-commerce spending on mobile devices, a profitable domestic
market and an under-penetrated international market. We expect
these opportunities to continue to drive top-line growth going
Groupon enjoys a first-mover advantage in the daily deals
market based on its well-recognized discount coupons. However, we
believe that the market is getting more competitive due to the
growing interest from technology stalwarts such as
) and Google.
Moreover, we believe that Groupon needs to post profits
consistently for the next couple of quarters to gain the
confidence of its jittery investors. Until that happens, we
prefer to remain Neutral on the stock over the long term.
Currently, Groupon has a Zacks Rank #3 (Hold).
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