Tracey Ryniec and David Bartosiak, Stock Strategists at Zacks Investment Research, discuss the outlook for Groupon (GRPN) as the shares have hit new post-IPO lows this year.
The company has a new CEO who announced a new strategy for 2016 which entails more marketing spending and streamlining and divesting its business in some countries around the world. But, as a result of the new strategy, it also had to lower guidance.
Due to the investment in the business, which is expected to be $150 to $200 million next year, analysts expect Groupon to see an earnings loss in 2016.
But Tracey sees some positives, including Groupon's cash position and its continuing share buyback program.
David, however, sees nothing good in the chart.
Should investors steer clear of Groupon or are its shares a deal? Watch our short video to find out.