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Stock analysis: Groupon gets rock-bottom score as shares plunge

A “sharing economy” enables consumers to share or trade goods with other consumers, or to rent what they own to others to lessen a monetary burden. Its advantages are numerous and tangible, explaining why it is becoming increasingly popular. The sharing economy is disrupting traditional notions of consumption and ownership. The idea is simple, but its consequences for businesses could be huge. It has created markets for things that would not have been considered monetizable assets before the recession; individuals can now become mini-entrepreneurs by leveraging some of their hard assets into micro-income streams. This, in turn, allows other users to benefit from hard assets at a fraction of the price of buying them. For example, some people now rent out a part of their house, offer the use of their car or ride-sharing services, or sell their time and expertise on specialized platforms such as TaskRabbit and others. A multitude of sharing platforms now allows users to monetize or acquire practically any asset or service.137 1. 5.7 R everberations of the last recession: Strategies for SMEs 2. Use group couponing as a marketing tool 3. Create opportunity through a sharing economy model

John Konstantaras/AP Images for Groupon

StockReports+ is a Thomson Reuters service that helps investors pick equities by simplifying the process of evaluating stocks, finding new trading ideas, and understanding trends affecting markets and industries. Globe Unlimited subscribers get unlimited access to these reports from about 7,000 companies, which normally retail for $25 each.

Groupon Inc. shares are falling hard today - down nearly 20 per cent at midday - after the e-commerce coupon company released a disappointing financial outlook as part of fourth-quarter results late Thursday.

Groupon said it expects to lose between 2 cents and 4 cents a share in the first quarter, much weaker than the 5 cents profit expected by analysts.

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This StockReports+ report suggests the stock sell-off could have been anticipated - and that more selling could materialize.

StockReports+ gives each stock an average score that combines the quantitative analysis of six widely-used investment decision-making tools: earnings, fundamentals, relative valuation, risk, price momentum and insider trading. Groupon's average score is 1 out of 10, and has been at that level for the past 14 weeks. It's currently among a group of 236 stocks awarded StockReports+ lowest score.

Read more in this comprehensive report.

Read other reports here.

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